PROPOSED DESIGN, CONSTRUCTION, COMPLETION, OPERATION, MANAGEMENT AND MAINTENANCE OF THE EAST KLANG VALLEY EXPRESSWAY
Announcement Details/Table Section :
The Board of Directors of AZRB is pleased to announce that its wholly-owned subsidiary, EKVE Sdn Bhd ("EKVE" or "the Company"), had on 13 February 2013 executed the Concession agreement with the Government of Malaysia as represented by the Ministry of Works in relation to the design, construction, completion, operation, management and maintenance of the East Klang Valley Expressway ("the Concession Agreement").
Salient terms of Concession Agreement
i. Grant of Concession
Subject to the terms and conditions of the Concession Agreement and the Federal Roads (Private Management) Act, 1984, the Government hereby grants to the Company, the right and authority to :-
(a) undertake the design and construction of the Expressway (including the Upgrading Works and widening of the Existing Road comprised thereof);
(b) supply and install tolling and other equipment (including telecommunication equipment) at the Toll Plaza and manage, operate and maintain the same on the Expressway during the Concession Period;
(c) demand, collect and retain toll for its own benefit from all vehicles liable to pay toll using the Expressway during the Operating Period;
(d) subject to all prevailing relevant laws in respect thereof, exclusively design, construct, manage, operate and maintain the Ancillary Facilities during the Concession Period and to retain the income received or receivable and derived therefrom;
(e) operate, manage and maintain (including, without limitation, utility charges incurred thereby) the Expressway during the Concession Period;
(f) design, construct, operate, manage and maintain the Administrative Offices; and
(g) undertake all other activities incidental to the performance of the Works referred to in the Concession Agreement.
ii. Concession Period
The Concession Period shall be for a period of fifty (50) years commencing from the Effective Date, subject to terms and conditions in the Concession Agreement.
iii. Estimated Construction Costs
The estimated total construction costs for the Construction Works shall be Ringgit One Billion Five Hundred and Fifty One Million One Hundred and Thirty Thousand (RM1,551,130,000.00) only.
iv. Financial Assistance
The Government agreed to provide to the Company a loan in the maximum principal amount of Ringgit Six Hundred And Thirty-Five Million (RM635,000,000.00) at an interest rate of four per centum (4%) per annum capitalized annually subject to a separate agreement to be entered into between the Government and the Company.
Financial effects
The Concession Agreement is expected to contribute positively to AZRB Group's earnings and the net tangible assets for future financial years.
Directors' and Substantial Shareholders' interest
None of the Directors and Substantial Shareholders of AZRB or any persons connected to them have any interests, direct or indirect, in the Concession Agreement.
Statement by the Board of Directors
The Board of AZRB is of the opinion that the Concession Agreement is in the best interest of the Company.
Ahmad Zaki Resources Berhad is a Malaysia-based investment holding company. The Company is engaged in providing management services and operates as a contractor of civil and structural works. The Company's segments include Engineering and Construction, Concession, Oil and Gas, Plantation and Property. The Engineering and Construction segment is engaged in civil and structural works. The Concession segment includes concession and assets managements. Its Oil and Gas segment deals in marine fuels, lubricants, petroleum-based products and logistics management and vessel related services. Its Plantation segment is engaged in the production of crude palm oil and kernel. Its Property segment is engaged in property development, hotel operation and facilities management. The Company's subsidiaries include Ahmad Zaki Sdn. Bhd., Inter-Century Sdn. Bhd., AZRB International Ventures Sdn. Bhd. and Trend Vista Development Sdn. Bhd.