The Bunus Regional Sewerage Treatment Plant, just behind the Titiwangsa Golf Course, is set to undergo expansion to cater to for the growing population in the 70 sq km cachement area covering north-eastern Kuala Lumpur and Ampang-Ulu Klang area.
KUALA LUMPUR: Ekovest Bhd
stands to reap up to RM71mil for delivering cost savings to the Government through the adoption of its enhanced design for the Bunus regional sewage treatment plant in Titiwangsa, Kuala Lumpur.
In a filing with Bursa Malaysia, the construction and property development company said unit Ekovest KL Bund Sdn Bhd had on Wednesday inked an incentive agreement with the Government for the improved design.
No figure was given on how much incentive payment was expected, but based on the agreed payment of up to 75% of the cost savings and Ekovest's estimate of direct cost savings of RM94.67mil, the company may receive up to RM71mil.
The incentive agreement runs up to Jan 30, 2019, and may be extended.The incentive is based on achieving the targeted key performance indicators resulting in more than 20% in cost savings - the difference between the original estimated project cost and the final project cost.
Apart from the ceiling of 75% of the cost savings, the incentive payment is capped at RM100mil (excluding duties and taxes).
Ekovest said besides the RM94.67mil savings from the adoption of the enhanced design, the design also optimised the use of land. It requires only 6.49ha versus 19ha under the original design.
This allowed the Government to efficiently use the remaining land area of 12.51ha for other purposes, it added.
The enhanced design allows for the plant capacity expansion of up to 3,000,000 population estimation (PE) from the current capacity of 750,000 PE without requiring additional land for expansion.
This indirect land cost equals savings of about RM145.3mil for the Government, according to the company.
In March 2015, Bina Puri Holdings Bhd was awarded a RM291.16mil contract in 2015 to expand and upgrade the Bunus treatment plant, with the construction projected to be completed within 18 months.
The Bunus project is part of the River of Life (ROL) sewage masterplan for Greater Kuala Lumpur/Klang Valley under the National Key Economic Areas blueprint.
Ekovest is the project delivery partner for the ROL project.
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