MRCB getting RM1.32b under EDL settlement deal with govt

A mutual termination of the 100%-owned Eastern Dispersal Link (EDL) concession appears under way

KUALA LUMPUR: Malaysian Resources Corporation Bhd's (MRCB) unit has inked a termination and settlement agreement with the government over the concession for the Eastern Dispersal Link Expressway (EDL) in Johor.

MRCB said on Monday under the agreement the government would pay it RM1.325bil, as announced in the Nov 2 Budget 2019.

Its unit MRCB Lingkaran Selatan Sdn Bhd (MLSSB) had signed the agreement with the government for the termination and settlement and it would be backdated to Jan 1, 2018.

MLSSB was awarded the EDL concession by the govenment under a 34-year concession agreement signed on June 26, 2007. 

Under the concession agreement, MLSSB was granted the right to design, construct, manage, operate and maintain the EDL, as well as collect toll. 

As part of the financing for the construction and development of the EDL, MLSSB's unit MRCB Southern Link Bhd had on June 23, 2008, issued senior sukuk of RM845mil and junior sukuk of RM199mil.

MSLB had also obtained a RM220mil term loan to build the EDL. The term loan was fully settled during the financial year ended Dec 31, 2017.