By Aidila Razak
Construction group Ahmad Zaki Resources Bhd has obtained a RM1.55 billion concession agreement for the design, construction, operation and maintenance of the East Klang Valley Expressway (EKVE).
In an announcement to Bursa Malaysia late yesterday, the company said that the concession agreement is for 50 years.
The company also came into a separate agreement with the government for a soft loan of RM635 million to finance the project, at four percent interest rate.
The project, also known as the Kuala Lumpur Outer Ring Road (KLORR) involves a tolled expressway linking a part Kajang Silk Highway to the Karak expressway.
A detailed environmental impact and assessment report on the project states that the project will adversely impact 214.7 hectares of forest reserve areas in Ampang, Hulu Gombak and Hulu Langat.
By midday, the news of the concession agreement has pushed Ahmad Zaki Resources’ shares up RM0.05 sen to RM0.77.
The shares started to pick up in February, following a steady decline.
Besides Ahmad Zaki Resources, the government last year agreed to give a RM2.24 billion soft loan at three percent interest rate for another highway project, the West Coast Expressway worth RM7 billion.
The 60-year West Coast Expressway concession was won by Kumpulan Europlus Bhd.
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