PETALING JAYA: IJM Corp Bhd’s Besraya Eastern Extension (BEE) highway is scheduled to open tomorrow, according to managing director and chief executive officer Datuk Teh Kean Ming.
“The total investment by IJM (for the highway) is RM700mil. This is only the construction cost and does not include the land cost for the BEE project,” Teh told StarBiz.
In 2009, the Government paid RM216.05mil in cash to IJM when it abolished toll collection at the Salak Jaya toll plaza on the Besraya Highway.
The Government has allowed the extension of Besraya, dubbed as BEE, and a further extension of eight years to its concession period.
Teh explained that the total length of BEE was 12.34km, with 75% of it an elevated section.
“Besraya’s concession has been extended for eight more years to end on May 14, 2040 due to the new 12.34km route,” he said, adding that the toll rate would be decided by the Government.
The diversified company currently has four infrastructure projects locally, namely, the New Pantai Expressway, the Besraya Highway, Lebuhraya Kajang-Seremban and Kuantan Port.
It also has three toll concessions with one under construction in India and one in Argentina.
“BEE is a much-needed connectivity to link the southern part from Putrajaya and Serdang to the east via the Middle Ring Road 2. We foresee a positive contribution in revenue that will boost our earnings in the future,” Teh explained.
For the financial year ended March 31, 2013, the infrastructure segment contributed RM474.1mil to revenue, of which about RM274mil came from highway concessions.
The infrastructure division contributed about 10% to revenue and pre-tax profit, making it a good recurring generator for IJM.
Analysts said while IJM’s toll revenue is expected to increase upon the commencement of tolling once BEE is completed, profits are expected to be affected in the initial years.
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