KUALA LUMPUR: KUB Malaysia Bhd, together with Malaysia Steel Works (KL) Bhd (Masteel), expects to submit an update of the proposed RM1.23 billion intercity rail transit system project in Iskandar Malaysia, Johor to the Economic Council, and recommend its re-tabling by this year.
In a statement yesterday, KUB (fundamental: 1.15; valuation: 1.2) said the Transport Ministry has received and is reviewing the updates on the proposed project.
“The group anticipates to put into action the partnership agreement made in January 2011 soon,” it said.
KUB, which is 22.55%-owned by Ministry of Finance Inc, said it will engage in further discussion with the Transport Ministry to speed up its review process.
The proposed project will be led by a joint-venture (JV) company called Metropolitan Commuter Network Sdn Bhd, in which Masteel (fundamental: 0.75; valuation: 1.2) and KUB hold 60% and 40% stakes respectively.
To recap, the proposed 100km-train system is planned to connect to Singapore’s mass rapid transit line. It will consist of up to 25 commuter stations in major towns in Iskandar Malaysia. The operation will based on a 25-year concession.
Construction-wise, it would be undertaken in three phases and completed within 24 months from the project commencement.
It was also proposed that the building of this infrastructure would be funded by project financing under the public-private partnership scheme.
The JV is said to combine KUB’s property, engineering and construction core competency and Masteel’s expertise in heavy engineering and building materials.
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This article first appeared in The Edge Financial Daily, on March 11, 2015.