Tuesday, January 17, 2017

Ekovest's new highway(s)

This is certainly a surprise. Ekovest announced not another highway that it has gotten an approval in principle but 3 highways! These highways are named Kampung Baru Link, Istana Link and Kapar Link Expressway (as below).

Before anyone got excited (me included) these are non binding agreement as mentioned above. Basically, non-binding means that it is NOT CERTAIN. However, in most situations - they do have merits for Ekovest to announce them. Otherwise, no one would go to the process of looking through a detailed project such as a RM6.32 billion highway.

Very little information (or non at all) can be found on these links - which makes this announcement a big surprise. To be honest, I did not put any projections for Ekovest to secure (or bid) for new highways as I thought the Setiawangsa-Pantai Expressway is tough enough.

My little worry is whether Ekovest has taken too much than it can chew?

Anyway, who am I to say don't take on more jobs. If this thing comes fruition, I definitely look at it as positive and it seems Ekovest is going to be the largest highway operator in the country, after UEM. Larger even than IJM, I presume (in terms of value not length).

Now, the subsidiary that received the letter is not KESTURI (which is DUKE 1 and 2 which just sold a 40% stake to EPF) or SPE (under Lebuhraya DUKE Fasa 3 Sdn Bhd). It is another company - a 70% owned Lebuhraya DUKE Fasa 2A Sdn Bhd - not 100% owned.

The name itself, signifies it may have linkage to the current DUKE. However, one point to note - unlike other highways which are all within Kuala Lumpur, this one seems like it would have to pass through Selangor (especially Kapar Link). Kuala Lumpur and Selangor is different and we know the difficulty of getting it approved on another state front as land matters are under the state government. There was one highway which was cancelled and another - DASH which is still under consideration.

Well, these are too much of speculative thinking.

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