Kuala Lumpur, April 21 – Ekovest Berhad announced announce its wholly-owned subsidiary, Ekovest KL Bund Sdn Bhd (EKLB) has entered into an incentive agreement with the Government of Malaysia for the enhanced design in respect of Bunus Regional Sewage Treatment Plant (BUNUS STP), Kuala Lumpur.
BUNUS STP is part of the Greater KL River of Life projects undertaken by Kementerian Wilayah Persekutuan and Jabatan Perkhidmatan Pembetungan, in which Ekovest is the Project Delivery Partner (PDP). The enhanced design has successfully contributed to the Government’s cost saving of RM94.67 million, translates to a total amount of approximately RM70 million incentives payment to the Company.
A filing with Bursa Malaysia shows that the Government has agreed to adopt the enhanced design submitted by the Company. The incentive is based on the achievement of the targeted key performance indicators by the Company’s, resulting in cost savings by the Government, being the difference between the original estimated project cost and the final cost of the Project. The total incentive for BUNUS STP shall not exceed RM100 million or 75% of the cost savings, whichever is lower, exclusive of all duties and taxes.
Ekovest Managing Director Datuk Seri Lim Keng Cheng said: “The enhanced design of BUNUS STP with 750,000 population estimation (“P.E”) capacity represents Ekovest’s innovative contributions towards its aspiration of delivering public interest projects, without compromising the value and quality of the deliverables.”
“This efficient use of land also caters for capacity expansion of up to 3,000,000 P.E and this indirect land cost savings for the Government is equivalent of approximately RM145.4 million.”
“The original design of BUNUS STP requires approximately 19 hectares of land, whereas the enhanced design as proposed by EKLB will only require a total area of 6.49 hectares.”
“This allows the Government to utilise the remaining land area of 12.51 hectares for future expansion of the BUNUS STP, and for implementation of other infrastructure projects which would benefit the Rakyat. 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.