Govt grants concession to Digistar

Govt grants concession to Digistar
Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Monday, 02 September 2013 15:04

KUALA LUMPUR (Sept 2): Digistar Corp Bhd has secured an 18-year government concession to build, manage and lease the proposed Malaysian National TECHNOLOGY [] Advancement Centre in Alor Gajah, Melaka.

In a statement to the stock exchange, Digistar, a broadcasting technology specialist, said its subsidiary Indera Persada Sdn Bhd (IPSB) had on March 18 this year entered into the concession agreement with the government, specifically, the Works Ministry.

Digistar said the concession which has been effective since last Friday (August 30) gives IPSB the right and authority to plan, design, construct, and finance the centre. "The total CONSTRUCTION [] cost of the construction work is RM240 million.

“We expect the concession agreement to contribute positively to the group’s earnings and net tangible assets for the financial years ending Sept 30, 2016 to Sept 30, 2030 covered in the agreement,” said Digistar.

The 18-year non-renewable concession comprises a construction period of three years and asset management services duration of fifteen years, it said.

"IPSB shall be entitled to availability and asset management services charges by way of monthly payment in arrears," Digistar said.