MRCB receives RM1.3 bln settlement for EDL concession termination

KUALA LUMPUR: Malaysian Resources Corporation Bhd's (MRCB) unit, MRCB Lingkaran Selatan Sdn Bhd (MLSSB), has received the RM1.325 billion settlement sum from the government for the mutual termination of the Eastern Dispersal Link (EDL) concession in Johor.

In a filing with Bursa Malaysia yesterday, MRCB said MLSSB was awarded the EDL concession by the government pursuant to a 34-year concession agreement signed with the government on June 26, 2007.

“Under the agreement, MLSSB was granted the right to design, construct, manage, operate and maintain the EDL, the administrative office and the ancillary facilities on the EDL, as well as to demand, collect and to retain toll from all vehicles liable to pay toll.

“Tolling on the EDL is based on an ‘open' concept, whereby motorists entering and exiting the causeway will be charged a flat rate, depending on their vehicle classification,” it said in a previous statement to the stock exchange.

On Dec 22, 2017, MLSSB received a letter from the Ministry of Works informing that toll collection on the EDL would be stopped effective from Jan 1, 2018, and the EDL concession period would end on Dec 31, 2017, after which the government would take over the expressway.

“The concession termination does not entail any transfer or disposal of MLSSB and MRCB Southern Link Bhd to the government,” MRCB added.