Malaysian Resources Corp Bhd (MRCB) has kept its end-2018 target to dispose the Eastern Dispersal Link (EDL) to the Malaysian government, reported The Edge.
This comes as the new government has pledged to abolish tolls, making the group at the forefront of the initiative.
In fact, the group had already abolished tolls on the highway, while the operations have been handed over to the federal government.
“We will work with the new government to finalise the formula (of the mutual termination agreement), and we are hopeful that we can complete this by the end of the year,” said MRCB executive director Mohd Imran Mohamad Salim after the annual general meeting of the group.
Imran revealed that while it is too early to price in the exact value the group could gain from the disposal, MRCB hopes that “at the minimum” it would be enough to cover all its debts on the EDL.
The group hopes the disposal would also lower its net gearing ratio from 0.53 times to 0.2 time by end-2018, said Amarjit Chhina, Chief Corporate Officer at MRCB.
Notably, the group spent RM1.2 billion in developing the 8.1km EDL.
MRCB, which has maintained an external order book figure of RM6.2 billion, is currently tendering for RM6.2 billion worth of construction and engineering projects.
“Any impact to the KL-Singapore high speed rail will not be reflected in our 2018 financial projections as we have not priced it in yet,” explained Imran.
MRCB is one of the project delivery partners for the rail project through a 50:50 joint venture with Gamuda Bhd.
The project currently faces uncertainty given the new government’s pledge to review all mega infrastructure projects.
Image sourced from Mole.my
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