The Star 7/7/2010
PETALING JAYA: Berjaya Corp Bhd (BCorp) has entered into a concession framework agreement with Xinan Public Asset Investment Co Ltd (XPAI) for the proposed construction of two wastewater treatment plants in Xinan County in Guandong province, China.
BCorp told Bursa Malaysia it would have the right to build, operate and maintain the proposed projects for a period (inclusive of construction) of 25 years and thereafter transfer the same back to XPAI at no cost.
“The estimated cost of the proposed projects is about 200 million renminbi (about RM97mil) and will be implemented in phases. The proposed projects are expected to generate total revenue of about 1.07 billion renminbi (about RM516mil) during the concession period,” it said.
BCorp said its wholly-owned subsidiary to be incorporated in China would have the rights to revise the tariff every two years during the concession period in accordance with the variation in operation cost factors such as electricity tariff and consumer price index.
2 comments:
China has been striving to explore more business opportunities over every corner of the world. they have been offering various soft loan packages to finance the foreign project through Exim bank of China. why now they rely on BCorp to build the projects on BOT basic. all interest and risk factors definately would be built in to the project cost. it is rather confusing to accept teh facts that China do not have this kind of project specialist and need to offer it to a foreign company i.e. Malaysia
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