Europlus unit gets RM7bil contract to build West Coast Expressway

KUALA LUMPUR: West Coast Expressway Sdn Bhd, a 64.2 per cent subsidiary of Kumpulan Europlus Bhd, will undertake the proposed construction of the West Coast Expressway, estimated to cost RM7.07 billion.

To enhance the viability of the project, the government would grant a Government Support Loan (GSL) of RM2.24 billion, starting from 2013 at an interest rate of four percent per annum and an interest subsidy, of up to three per cent from commercial loans for 22 years.

In a filing to Bursa Malaysia here, Kumpulan Europlus said the terms of the GSL and the interest subsidy, would be finalised by West Coast with the Finance Ministry.

It said toll revenue in excess of an agreed traffic volume would be shared on the basis of 70:30 between the government and West Coast till full settlement of the GSL and subsequently 30:70 after the settlement.

As for land acquisition, the cost of up to RM980 million would be borne by the government.

Meanwhile, construction works for the project would be implemented by West Coast through open tender, said Kumpulan Europlus.

The project, which is a build-operate-transfer (BOT) project with a concession period of 60 years, cover a distance of 316 kilometres from Banting in Selangor to Taiping in Perak.

Of the total distance, 224km will be tolled while 92km will be toll-free.
 -Bernama