Benalec gets Melaka reclamation works

KUALA LUMPUR: Benalec Holdings Bhd has entered into an agreement with Yayasan DMDI (DMDI), a company set up by the Melaka state government, to undertake reclamation works for the latter.

In an announcement to Bursa Malaysia on Monday, Mar 14, it said Jaamas Cekap Sdn Bhd (JCSB), a wholly-owned unit of Benalec, had on the same day entered into a deed of assignment (DoA) with DMDI, whereby the latter had agreed to assign its rights and transfer its liabilities and obligations of the concession to reclaim a piece of land in Melaka for the former.

Last Friday, the Melaka state government granted DMDI the right to reclaim a portion of the coast of Kawasan Kota Laksamana in Bandar Melaka. Upon the completion of the reclamation works, the reclaimed land will measure about 101.1 hectares.

Benalec said in consideration of DMDI's transfer of rights and obligations of the concession to JCSB, the latter shall surrender to the state government one-sixth portion of the net saleable area of the proposed reclaimed land measuring 41.67 acres.

JCSB will also surrender 31 acres of reclaimed land to DMDIand among other things, payment of RM1.25 million to the state government as earnest money upon execution of the concession agreement between the state government and DMDI and an ex-gratia payment of RM1.09 million to fishermen that would be affected by the reclamation works.

Benalec said upon completion of the reclamation works and surrendering to the state government's and DMDI's land portion, respectively, JCSB will be entitled to 177.33 acres of the proposed reclaimed land. The land will be retained as "Land Held for Sale" in JCSB's balance sheet, it said.

The company noted that the reclamation works pursuant to the DoA would be funded by internally-generated funds and bank borrowings. Nevertheless, the breakdown was not available at press time.