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Zelan bags 25-year Gombak terminal concession

KUALA LUMPUR (Mar 16): Zelan Bhd's 95%-owned Terminal Bersepadu Gombak Sdn Bhd (Tegas) on Thursday entered into a public-private partnership agreement with the government to construct the Gombak Integrated Transport Terminal (GITT), a deal that comes with a 25-year concession.

Construction of the seven-storey terminal, to be integrated with the existing Gombak LRT station, will cost some RM307.37 million and is expected to take 27 months.

"The GITT will be a major transportation hub [positioned] to take over the existing operations of the eastbound intercity buses and taxis as well as intracity buses and taxis for the Klang Valley," Zelan said in a statement on Thursday. "[GITT] will also serve as a temporary hub for the operations of the northbound intercity buses and taxis," it added.

The build-lease-manage-operate-transfer agreement is conditional upon Tegas being provided RM260.14 million as project financing by Bank Pembangunan Malaysia Bhd. A letter dated Dec 7, 2011, offering RM260.14 million project financing facility has been issued to Tegas by the bank, Zelan said.

The agreement, which comes with a concession period of 25 years and three months, is also conditional upon the revocation of the project land's "Malay reservation" status.

The government will pay Tegas an initial payment of RM64.18 million within 30 days of the issuance of the certificate of acceptance (CoA), which confirms completion of construction works. Tegas will also receive a monthly concession charge of RM3.12 million from the government in consideration of the tasks of construction works, facility operation and asset management services it undertakes. The first payment will be one month after the issuance of the CoA.

Additionally, Tegas has been granted the rights and authority to collect retail and commercial charges from third parties for the use or rental of remaining areas within the terminal, which includes car park, retail and commercial areas, measuring about 79,151 sq m.

Subject to the provisions of the Land Public Transport Act 2010, Tegas has been granted the rights and authority to impose, collect and retain the facility operation charges from operators of public service vehicles like buses and taxis using GITT.

The government has also agreed to award Tegas the design and build contract to upgrade the Taman Melati Road and the Middle Ring Road 2 to facilitate effective and smooth operation of the terminal.

Tegas shall, at no cost, hand over the land and GITT to the government upon expiry of the concession, including the right to provide any services in relation the facility.

Landasan Kapital (M) Sdn Bhd owns the remaining 5% in Tegas.

Zelan shed one sen or 2.08% to 47 sen on Thursday after trading between 46.5 sen and 48.5 sen. A total of 2.58 million shares changed hands.

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