KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) yesterday signed a concession agreement with the Government via the Works Ministry to design, construct, operate and maintain the Eastern Dispersal Link Expressway (EDL) in Johor worth RM977mil.

Group managing director Shahril Ridza Ridzuan said the project would be undertaken by wholly owned subsidiary, MRCB Linkaran Selatan Sdn Bhd (MLSSB).

Shahril said the EDL, which had a concession period of 34 years, would take four years to complete (inclusive of land acquisition) starting from Oct 1.

Stretching about 8.1km, the EDL is an open toll system with dual three-lane carriageway directly linking the new Customs, Immigration and Quarantine Complex (CIQ) at Tanjung Puteri and North-South Expressway via the Pandan Interchange in Johor Baru.

The EDL project also included providing an integrated traffic surveillance and control system, street lighting and traffic information system that would reduce the journey between the Pandan Interchange and CIQ to less than 10 minutes, he told reporters after the signing between MLSSB and the Government yesterday.

Shahril said the EDL, which was the company’s second concession project, was significant for MRCB as it would be playing a major role in the infrastructure works needed to support the Iskandar Development Region.

While the project would help strengthen MRCB’s recurring income stream over time, it would not have a material impact on the company’s earnings for its current year ending Dec 31, he said.

Shahril also said the EDL project would pump up MRCB’s order book, which currently stood at RM2.4bil.

MRCB, he said, would finance the project mainly through the bond market and partly from reserves.

On the Penang monorail project, Shahril said MRCB was hopeful of securing a major slice of the project.

“We are working with two other companies to bid for the project. Each of us have our strengths,” he said, adding that MRCB hoped the Government would announce the winning bids before year-end.

 
MRCB :  [Stock Watch]  [News]

For latest Bursa Malaysia indices, charts and other information click here