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Wednesday, December 7, 2011

River of life job in KL valued at RM2.2bil

Ekovest-MRCB JV will earn RM22mil fee from the River of Life project

PETALING JAYA: Ekovest-MRCB JV Sdn Bhd (EMJV), a 60:40 joint venture between Ekovest Bhd and Malaysian Resources Corp Bhd (MRCB), has been appointed the project delivery partner (PDP) by the Government to assist in the implementation and delivery of the River of Life (ROL) project.

Ekovest told Bursa Malaysia yesterday that the project was valued at RM2.2bil over three years. The value of the contract was only revealed yesterday.

“As the PDP, it (EMJV) will earn a maximum fee of RM22mil, which is equivalent to 1% of the total projected works to be delivered over the three-year period. The PDP will also enjoy monetary incentives with respect to the river rehabilitation and beautification works,” it said.

It did not elaborate on the monetary incentives.

The ROL is an Entry Point Project identified in the Greater Kuala Lumpur National Key Economic Area under the Government's Economic Transformation Programme. It aims to transform the rivers running through the heart of Kuala Lumpur by undertaking river rehabilitation, beautification of riverbank and river corridor development.

The ROL project entails the rehabilitation of the Klang and Gombak Rivers, and the beautification works on an initial 10.7km stretch.

Ekovest said the PDP project would not have an immediate effect on the company's earnings per share and net tangible assets for the current financial year ending June 30, 2012, but it was expected to contribute positively to the future earnings of the company.

In February, MRCB announced to Bursa Malaysia that the Ekovest-MRCB joint venture had received a letter of intent from the Government for the ROL project.

The following month, MRCB and Ekovest signed an agreement to set up a joint-venture company known as KL Bund Sdn Bhd to undertake the ROL project.

Kuala Lumpur Mayor Tan Sri Ahmad Fuad Ismail was reported in August as saying said the PDP would not be allowed to bid for government land near the Klang River as long as the joint-venture company remained the Government's partner in the upgrading of the river.

He said this was due to its competitive edge over others, given that it had access to information in its role as PDP.

By The Star

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