Kumpulan Europlus Bhd announced key concession terms in relation to the West Coast Expressway project, which involves the development of a highway from Banting, Selangor, to Taiping, Perak, with a tolled highway.
Kumpulan Europlus’ 80 per cent subsidiary West Coast Expressway Sdn Bhd had, on Jan 2, 2013, entered into a concession agreement with the government for the project, valued at RM6 billion for a period of five years.
In a filing to Bursa Malaysia, Kumpulan Europlus said among the key agreed terms are the concession period will be extended for another 10 years if the agreed targeted internal rate of return (IRR) is not achieved.
The government has agreed to provide a government support loan (GSL) at an interest of four per cent per annum, capitalised annually, subject to a separate negotiation and agreement to be executed with the Ministry of Finance.