KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) and Ekovest Bhd have established a joint venture company — KL Bund Sdn Bhd (KBSB) which would act as the project delivery partner (PDP) for the multi-billion River of Life project to rehabilitate the Klang River.
In an announcement on Tuesday, Mar 29, both companies stated they had entered into a joint venture and shareholders agreement (JVSA) where Ekovest would hold 60% in KBSB and MRCB 40%. According to MRCB’s announcement, the rationale for the JVSA is to enable both companies to regulate their rights and obligations as shareholders of KBSB which will act as the PDP.
Tuesday's announcement is a follow up to both companies getting the letter of intent for the river rehabilitation job from Dewan Bandaraya Kuala Lumpur on Feb 22 this year.
The value of the contract has not been revealed but it is speculated to be up to RM20 billion for the full 100km rehabilitation of the Klang River. Analysts are expecting it to be rolled out in phases, with the first portion valued at an estimated RM1.5 billion with priority given to the Masjid India area in Kuala Lumpur.
MRCB closed four sen higher at RM2.17 on Tuesday, while Ekovest rose one sen to RM3.80.
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