Mideast role in Penang monorail project?

Published: 2008/10/08

The RM2.2 billion project's estimated 15 per cent internal rate of return is attractive enough to invite equity partners, especially from the Middle East, says Melewar Industrial

MELEWAR Industrial Group Bhd (MIG) may welcome Middle East partners to help finance the RM2.2 billion Penang monorail project."There is no way Melewar can fund it all by ourselves. We definitely have to invite equity partners," MIG managing director and chief executive officer Datuk Tunku Ya'acob Tunku Abdullah said.He said the project's estimated 15 per cent internal rate of return (IRR) was attractive enough to invite equity partners, especially from the Middle East.However, MIG will only call for partners when it gets the nod from the Penang state government.

With an equity partner, MIG would then hold between 20 per cent and 30 per cent of the monorail project, Tunku Ya'acob said.However, it can only take off a year from now as it is currently difficult to raise money via the bond market.Tunku Ya'acob said that the state government was keen on MIG's proposal as the state would not have to fund the project.