A worker unloads palm fruit at a palm oil plantation in Peat Jaya, Jambi province on the Indonesian island of Sumatra September 15, 2015 in this file photo taken by Antara Foto. Palm yields in Indonesia's key producing areas are expected to fall as much as 20 percent in the first half of 2016 due to an ongoing El Nino weather event, although total annual output may remain steady as new plantations mature, a Reuters survey shows. To match INDONESIA-PALMOIL/ REUTERS/Wahyu Putro A/Antara Foto/FilesATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. IT IS DISTRIBUTED, EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. MANDATORY CREDIT. INDONESIA OUT. NO COMMERCIAL OR EDITORIAL SALES IN INDONESIA.
KUALA LUMPUR: Instacom Group Bhd plans to collaborate with Indonesian palm oil plantation firm PT Kharisma Kemingking to jointly develop a port and an integrated industrial and commercial development on 2,155.52ha in the Jambi province of Sumatra.
The telecommunication engineering company, which diversified into construction last year, told Bursa Malaysia that it had signed on Monday a heads of agreement with PT Kharisma to form consortium comprising it, its indirect subsidiary Vivocom Enterprise Sdn Bhd and PT Kharisma to carry out the project in three phases.
Under Phase 1, the consortium will implement the road infrastructure, jetty and the relevant power supply plant and water absorption area.
Phase 2 will involve expanding Kharisma Port to cover 500ha, cold room, cold terminal, palm oil and rubber industry, production support facility, apartments, rental flats, employee housing and sport facilities.
Phase 3 will comprise the commercial development, hotel, golf course, Islamic centre and religious worship centre.
Instacom said Vivocom, which is a unit of Instacom’s 78.6% owned subsidiary Neata Aluminium (M) Sdn Bhd, would conduct a feasibility study on the scope of works including a due diligence review.
It will also prepare the development plan and source for investor and/or funder as well as turnkey contractor and/or engineering, procurement and construction contractor, including the financing for the proposed project.
Instacom said the cost of the proposed project would be determined only following the feasibility study and diligence study and on the finalisation of the terms and conditions of the definitive agreements.
“Further details of the financial effects arising from the proposed collaboration will be announced upon the execution of the definitive agreements to be agreed upon by the parties,” it added.
Instacom shares gained 1 sen to close at 29 sen on Friday, with 58.93 million shares being traded.
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