Ekovest to get grant for The Gateway @ KL Bund

By THE STAR
PETALING JAYA: Ekovest Bhd has entered into a facilitation fund agreement with the Government and Bank Pembangunan Malaysia Bhd, which could see it receiving RM117mil in grant for its The Gateway @ KL Bund project.
The company said in its filing with Bursa Malaysia that the Government, through the Public Private Partnership Unit in the Prime Minister’s Department, would provide its unit, Ekovest Properties Sdn Bhd a grant of not more than RM117mil or 5% of the actual construction costs of the project, whichever is lower.
The grant is to facilitate the development of the project, which comprises planning, designing, financing, development, construction, completion, testing and commissioning of a commercial development, namely, The Gateway @ KL Bund.
The project will consist of 300 1Malaysia People Housing Programme affordable homes, 320 units of Riverfront service apartments, hotel and offices, executive small-office-home-office suites, a lifestyle shopping mall, and Riverfront residences.
There are also the necessary facilities and infrastructure, including water canals and a central lake plaza, underpass and ramps. “The grant shall be used solely for the purpose of funding such costs and expenses relating to or in connection with the project,” said Ekovest.
The facilitation fund is an initiative provided by the Government to encourage implementation of private sector projects.
The grant will only be disbursed once the project is completed, hence Ekovest does not expect any immediate effect to the group’s earnings for the financial year ending June 30, 2014.
“Nonetheless, the overall infrastructure development cost of the project is expected to be reduced upon disbursement of the grant to Ekovest Properties and this is expected to contribute positively towards the earnings and net assets of the group,” it said.
The facilitation fund is subject to Ekovest fulfilling several conditions including proving that it has the capacity to finance the project. It also has to show that it has received the approval for the alienation of four pieces of land spanning 19,736 sq m situated in Mukim Setapak in Kuala Lumpur.