Zelan unit signs supplemental agreement with Govt, IIUM


KUALA LUMPUR (June 4): Zelan Bhd, through its unit that holds the concession to develop the Centre for Foundation Studies (Phase 3) at the International Islamic University Malaysia's (IIUM) Gambang campus in Kuantan, Pahang, has agreed to the reduction in various costs associated with the project.

In a filing with Bursa Malaysia yesterday, Zelan said wholly-owned subsidiary Konsesi Pusat Asasi Gambang Sdn Bhd (KPAG) entered into a supplemental agreement (SA) with the Government and IIUM on May 31.

The salient terms of the SA include the revision of the total availability charges (AC) down to RM715.49 million from RM835.61 million as stated in an earlier announcement to the stock exchange, dated July 5, 2012.

Total asset maintenance services charges (AMSC) have also been reduced to RM408.16 million from RM504.68 million earlier, while the total asset management programme was revised to RM113.71 million from RM132.80 million previously.

The concession cost, meanwhile, was revised to RM359.72 million.

Zelan said KPAG would also carry out minor defects works within six months from May 1, 2019.

With the execution of the SA, the monthly AC and the AMSC, including the arrears from Dec 1, 2018, would be paid to KPAG.

"The execution of the SA and the receipt of the AC and AMSC payments are expected to contribute positively towards the financial position of Zelan for the financial year ending Dec 31, 2019," it added.

It said the SA was in respect of the concession agreement signed between KPAG, the Government and IIUM on July 5, 2012.

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