KUALA LUMPUR (March 8): Varia Bhd, formerly known as Stella Holdings Bhd, has signed a Memorandum of Understanding (MOU) with Sungai Klang Link Sdn Bhd to offer its expertise in assisting the preparation, management, control, and execution of works for the proposed Sungai Klang Link (SKL) elevated highway.

SKL is a special purpose vehicle established to finance, design, construct, operate and manage the proposed development of SKL elevated highway — which is set to provide alternative routes for road users in the Klang Valley.

According to Varia, SKL is now at an advanced stage of pursuing the final approval of securing the concession agreement from the government for the right to build, manage, own and operate the SKL elevated highway project.

“The proposed project involves the construction of a new tolled elevated highway of approximately 52.5 kilometres in length aligned along the Klang river which will be integrated with the existing highway networks through seven proposed interchanges starting from Klang with an access through an interchange of the West Coast Expressway (WCE) and ends at the interchange of New Pantai Expressway 2,” it said.

Under the MOU, SKL should secure the proposed project and comply with all the government’s requirements for the approvals and permits at its own costs.

SKL will also provide Varia with the requirements and technical specifications, scope of works and all relevant documents in relation to the proposed projects.

The MOU is valid for six months from March 8, and is subject to renewal by another six months upon mutual agreement of the both parties.

“There is no foreseeable financial effects arising from the MOU but it is expected to contribute positively to the revenue and earnings of Varia if the proposed project is approved by the government and successfully secured by SKL,” it said.

Shares in Varia closed three sen or 3.26% lower at 89 sen on Friday, valuing the group at RM371.13 million.