Perak Transit gets RM8mil govt grant to build transportation terminal

Perak Transit bus passengers arriving at the Terminal Amanjaya in Meru.

KUALA LUMPUR: Perak Transit Bhd, which operates Terminal AmanJaya in Ipoh, Perak, has received approval in principle for a grant of up to RM8.014mil from the Government to facilitate the construction of a new public transport terminal in the state, Terminal Kampar.

The company, which also operates public bus services, told Bursa Malaysia that 99.9%-owned unit The Combined Bus Services Sdn Bhd received a letter from the the Public Private Partnership Unit (UKAS) of the Prime Minister’s Department on Tuesday informing it that UKAS had approved in principle the award of the grant in the form of facilitation fund.

This approval in principle, however, is subject to certain terms and conditions, including that the amount of the facilitation fund does not exceed RM8.014mil or 6.24% of the actual project cost (whichever is lower).

The facilitation fund will be paid in lump sum, reimbursable on completion of Terminal Kampar.

Perak Transit said a facilitation fund agreement will be signed between the Government, Bank Pembangunan Malaysia Bhd and The Combined Bus within three months from the date of the letter (Dec 21).

According to the company, the facilitation fund will have no effect on its earnings per share, net assets per share, gearing, share capital and its substantial shareholders’ shareholdings for the financial year ending Dec 31, 2017. 

“However, the facilitation fund is expected to contribute positively to the Perak Transit group’s earnings and net tangible assets upon completion of the Terminal Kampar, which expected to be in the fourth quarter of 2018,” it added.

Perak Transit received the nod for Terminal Kampar’s building plan from Majlis Daerah Kampar in November last year.

In June this year, the Finance Ministry gave the terminal’s construction an Approved Service Project status. This means The Combined Bus can claim up to 60% of the capital expenditure invested to be offset against 70% of its statutory income for a period of five years for the years of assessment 2016 to 2020.

According to Perak Transit’s prospectus in conjunction with its listing in October last year, the construction of Terminal Kampar on 3.72 acres was expected to kick off in the second half of last year and be completed in 18 months.

Just over half (RM20mil) of the company’s initial public offering proceeds was earmarked for the construction of Terminal Kampar.