KUALA LUMPUR (Sept 10): The proposed Bandar Malaysia-Seri Kembangan Expressway (BSE) is estimated to cost RM1.75 billion to build, with a proposed concession period of 60 years including four years for construction, Lim Seong Hai Capital Bhd (KL:LSH) said on Thursday.
The company said the project is expected to be financed through a combination of internally generated funds, borrowings and other fundraising exercises.
The 8.2km expressway will be undertaken by LSH’s wholly- owned subsidiary LSH Infra Sdn Bhd jointly with
Pertama Makmur Sdn Bhd through a special-purpose vehicle equally owned by the two parties.
Works Minister Datuk Seri Alexander Nanta Linggi had on Aug 28 announced that the Cabinet had agreed in principle to the proposed development of the BSE by the joint-venture.
In a bourse filing on Thursday, LSH said it had received a letter from the Works Ministry confirming that the Cabinet had agreed in principle on the implementation of the highway project.
BSE will connect Bandar Malaysia in southern Kuala Lumpur to Seri Kembangan in Selangor, with links to several major highways including the Setiawangsa-Pantai Expressway, Maju Expressway and North-South Expressway.
However, LSH said the project remains subject to the completion of detailed technical and financial studies, negotiation and execution of the concession agreement, as well as all relevant approvals.
The studies and concession agreement negotiations are required to be completed within 12 months from the approval in principle. Otherwise, the proposal will be referred back to the Cabinet for reaffirmation, it said.
LSH added that the approval in principle does not oblige the government to proceed with the project, and that the government may defer, modify or abandon the proposal at its discretion.
Shares of LSH ended unchanged at RM1.60 on Thursday, giving the company a market capitalisation of RM1.34 billion.