PROTASCO Berhad Wins 3 Concessions Including Federal Roads Maintenance

Apr 5, 2018 - Kajang, KL :

PROTASCO Berhad has been awarded an eight-year extension of its concession to maintain Federal Roads in central and eastern Peninsular Malaysia until 2026, and two other road maintenance concessions ins Perak.

Roadcare (M) Sdn Bhd, Protasco Berhad’s subsidiary, signed the Concession Agreement with the Government of Malaysia today, Protasco said in an announcement to Bursa Malaysia. The Concession Agreement covers Federal Roads in Selangor, Pahang, Terengganu and Kelantan for a further period of eight years commencing from 17 Feb 2018 until 16 Feb 2026, it said.

This eight-year period is the second part of a 10-year concession awarded earlier in 2016. The initial two-year period expired in February 2018 and was extended in the interim for three months.

Meanwhile, another subsidiary, Empayar Indera Sdn Bhd, has been awarded two concessions for routine and periodic maintenance works by the Perak state government.

The first covering state roads in Perak is a five-year extension for an existing concession which expires in December 2019. This agreement for routine and periodic maintenance includes a two-year extension which would mean the contract duration ends on 31 December 2026.

“The contract sum for the first two years shall be approximately RM126.1 million, and shall be subject to review every two years during the contract period of five plus two years,” the company said in a separate announcement to Bursa Malaysia.

The second concession is also a five-year extension for both routine and periodic maintenance works for agricultural roads in Perak, worth RM90.1 million in the first two years. The contract sum will be subject to review every two years during the contract period of five plus two years.

The contract period is for five years from 1 March 2019 until 28 February 2024 with an extension of another 2 years from 1 March 2024 until 28 February 2026, it said in another announcement to Bursa Malaysia.

“The award is an extension of the existing maintenance contract with the state Government of Perak, which is expiring in February 2019,” it said.

These two contracts are expected to contribute positively to the future earnings of Protasco Group, it added.

“This Federal Road concession and the two Perak concessions will help us maintain stable earnings and will boost our maintenance order book to RM5.3 billion,” said Executive Vice Chairman & Group Managing Director Dato’ Sri Chong Ket Pen.