Announcement Details/Table Section :
Ekovest - MRCB JV Appointed As Project Delivery Partner (PDP) For River of Life (ROL) project
- ROL Project Valued at RM2.2 Billion
- PDP To Earn 1% Fee Plus Performance Incentives
Further to the announcements made by Ekovest Berhad (Ekovest or the Company) on 23 February 2011 and 29 March 2011, Ekovest is pleased to announce that Ekovest - MRCB JV Sdn Bhd (EMJV) has been appointed the Project Delivery Partner by The Government of Malaysia who is represented by The Ministry of Federal Territories and Urban Wellbeing to assist in the smooth implementation and delivery of the ROL Project today.
The River of Life Project is an Entry Point Project identified in the Greater Kuala Lumpur National Key Economic Area under the Government’s Economic Transformation Program. 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 Sungai Kelang and Sungai Gombak, and the beautification works of an initial 10.7km stretch. EMJV’s PDP service will be for a period of three years with a projected contract value of RM2.2billion. As the PDP, it will earn a maximum fee of RM22 million, 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.
The above transaction will not have an immediate effect on the earnings per share and net tangible assets per share of Ekovest for the current financial year ending 30 June 2012, but is expected to contribute positively to the earnings of Ekovest in the future.
None of the directors, substantial shareholders and persons connected with a director or substantial shareholder has any interest, direct and indirect in the above transaction.
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