KUALA LUMPUR: Ekovest Bhd stands to gain up to RM71mil for delivering cost savings to the government from adopting 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 its unit Ekovest KL Bund Sdn Bhd had yesterday inked an incentive agreement with the government for the enhanced design.
No figure was given on how much incentive payment is expected, but based on the agreed payment of up to 75% of the cost savings and Ekovest’s estimated 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 indirect land cost equals savings of about RM145.3mil, according to the company.
In March 2015, Bina Puri Holdings Bhd was awarded a RM291.16mil contract in 2015 to expand and upgrade the 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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