UEM-MMC JV delivery partner for Pan Borneo Highway

PUTRAJAYA, 11 April -- Perdana Menteri Datuk Seri Najib Tun Razak bersama Timbalan Perdana Menteri Datuk Seri Dr Ahmad Zahid Hamidi dan Ketua Menteri Sabah, Datuk Seri Musa Aman menyaksikan majlis memeterai perjanjian pembinaan projek Lebuhraya Pan Borneo Sabah antara Kerajaan Persekutuan, Kerajaan Negeri dan Rakan Penyampai Projek atau Project Delivery Partner (PDP), Borneo Highway PDP Sdn Bhd (BHP) di Bangunan Perdana Putra hari ini. --fotoBERNAMA (2016) HAK CIPTA TERPELIHARA

KUALA LUMPUR: UEM MMC Joint Venture Sdn Bhd will have a 40% stake in Borneo Highway PDP Sdn Bhd (BHP), which has been appointed project delivery partner (PDP) to implement Phase 1 of the RM12.8bil Sabah portion of the Pan Borneo Highway.

MMC told Bursa Malaysia that BHP had on Monday executed the PDP agreement with the Federal Government and the Sabah government.

UEM MMC Joint Venture is a 50:50 jointly controlled entity of MMC Corp Bhd. MMC’s effective interest in BHP, via UEM MMC Joint Venture, is 20%.

The announcement did not mention which company owns the other 60% stake in BHP, but according to a recent report by AmInvestment Bank Bhd, the stake is held by Warisan Tarang, a company set up in March 2012.

BHP’s objective is to implement, supervise, manage and deliver the project within the time and cost allocated. The project is scheduled for completion on Dec 31, 2021.

MMC said it would fund its share in BHP through internally generated funds and bank borrowings.

It said the project was not expected to have any significant effect on the earnings of the MMC group for the financial year ending Dec 31, 2016. “However, it is expected to contribute positively to the future earnings of the MMC group.”

MMC added that the project was not expected to have any significant impact on the group’s net tangible assets for this financial year.

MMC shares closed unchanged at RM2.12 on Monday, with 897,400 shares changing hands.