This article first appeared in The Edge Financial Daily on April 6, 2018
KUALA LUMPUR: Protasco Bhd has been granted extensions to three maintenance concessions of federal roads in Peninsular Malaysia, as well as state roads in Perak, it said in a statement yesterday.
The group’s subsidiary Roadcare (M) Sdn Bhd signed the concession agreement with the government yesterday, Protasco said in the statement. The concession covers federal roads in Selangor, Pahang, Terengganu and Kelantan, commencing from Feb 17, 2018, to Feb 16, 2026.
“This eight-year period is the second part of a 10-year concession awarded earlier in 2016. The initial two-year period expired in February 2018 and was extended in the interim for three months,” said Protasco.
Additionally, its other subsidiary Empayar Indera Sdn Bhd has been awarded two concessions by the Perak state government for routine and periodic maintenance works.
The first concession is a five-year extension for an existing concession which expires in December 2019. “This agreement for routine and periodic maintenance includes a two-year extension which would mean the contract duration ends on Dec 31, 2026,” the group said.
It said the contract sum for the first two years shall be approximately RM126.1 million, and shall be subject to a review every two years during the contract period of five plus two years.
The second concession is also a five-year extension for both routine and periodic maintenance works for agricultural roads in Perak, worth RM90.1 million in the first two years. The contract sum will be subject to a review every two years during the contract period of five plus two years, it said.
The contract period is for five years from March 1, 2019, to Feb 28, 2024, with an extension of another two years from March 1, 2024, to Feb 28, 2026.
“This federal road concession and the two Perak concessions will help us maintain stable earnings and boost our maintenance order book to RM5.3 billion,” said its executive vice-chairman and group managing director Datuk Sri Chong Ket Pen.