KUALA LUMPUR (April 19): Ekovest Bhd said today that its wholly-owned subsidiary Ekovest KL Bund Sdn Bhd (EKLB) will receive an incentive from the government in respect of the Bunus regional sewage treatment plant (STP) here.

The incentive is payable to EKLB upon the company's enhanced design for the Bunus STP delivering more than 20% cost savings of the final cost of the project to the government, as well as it achieving the key performance indicators set under an incentive agreement.

The total incentive for Bunus STP will not exceed RM100 million or 75% of the cost savings, whichever is lower, said Ekovest.

In a filing with Bursa Malaysia today, Ekovest said EKLB has signed the incentive agreement with the government for the enhanced design in respect of the Bunus STP, which is part of the government's Greater Kuala Lumpur River of Life project.

"The adoption of the enhanced design by the government pursuant to the incentive agreement is expected to provide it with cost savings of RM94.67 million," it added.

"The original design of Bunus STP requires approximately 19ha of land, whereas the enhanced design as proposed by EKLB will only require a total area of 6.49ha," Ekovest managing director Datuk Seri Lim Keng Cheng said in a separate statement today.

"This allows the government to utilise the remaining land area of 12.51ha for future expansion of the Bunus STP, and for implementation of other infrastructure projects.

"Additionally, the enhanced design has additional green technology features that will cater for future growth, operation and maintenance of the Bunus STP, gas energy generation and allowing sludge to be composted and turned into fertiliser,” he added.

Lim said Ekovest is also working with the government on the upcoming incentive agreement for the enhanced design of Batu, Jinjang-Kepong sewage treatment plant, which will contribute to government’s cost savings of RM114.6 million.

The total cost saving for both Bunus STP and Batu, Jinjang-Kepong sewage treatment plant will be RM209.27 million, he noted.

Ekovest shares fell 2.2% to close at RM1.33 today for a market capitalisation of RM2.85 billion.