Kumpulan Europlus and Malaysia government sign Expressway deal
Kumpulan Europlus (KE) and the Malaysian government have signed a deal for the construction of the West Coast Expressway. The multi-million dollar deal will see KE build the 233km highway.
January 4, 2013
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4213 Kumpulan Europlus (KE) and the 3491 Malaysian Government have signed a deal for the construction of the West Coast Expressway. The multi-million dollar deal will see KE build the 233km highway.
The Malaysian Government is giving its approval for a new expressway project. The road link will be built by West Coast Expressway (WCE) and is expected to cost in the order of US$2.32 billion.
Malaysia’s West Coast Expressway company has reported that it will inject nearly US$425 million into its West Coast Expressway project.
Total cost of the West Coast Expressway, which will stretch 233km between Banting in Selangor state and Taiping in Perak state on the Malaysian peninsula, is expected to be around $1.56 billion.
The highway will be built over five years as a build-operate-transfer project with a concession of 50 years, The Star newspaper reported in February 2014.
The project to construct Malaysia’s West Coast Expressway deal has been awarded to a major contractor. Under the terms of the deal, the project will be carried out by the IJM-Kumpulan Europlus joint venture. The five year contract is expected to cost in the region of US$1.44 billion to carry out. When complete the new expressway will cut journey times between Taiping and Banting.
Highway managers in Malaysia face having their road maintenance funding slashed if they do not spend their current budgets. In a surprise announcement this week, the Malaysian government warned that states which “fail to manage and utilise funds allocated for road maintenance from the Federal Government risk having their provisions reduced in the future.”
