Ekovest gets RM117 mln facilitation fund for commercial project

by **Cals** Wed 11 Jun 2014, 01:57

Business & Markets 2014

Written by Bernama

Tuesday, 10 June 2014 20:32

KUALA LUMPUR (June 10): Ekovest Bhd's wholly-owned subsidiary, Ekovest Properties Sdn Bhd (EPSB), has entered into a facilitation fund agreement with the Government of Malaysia and Bank Pembangunan Malaysia Bhd today, in relation to a grant provided to EPSB’s commercial development known as The Gateway@KL Bund.

The commercial development is on a 5.87-hectare land near Setapak, located within Precinct 1 of the River of Life (RoL) project, Ekovest said in a filing to Bursa Malaysia today.

The RoL is an Entry Point Project identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area (NKEA), under the Economic Transformation Programme (ETP).

The Public Private Partnership Unit of the Prime Minister’s Department represented the Government in the agreement.

Ekovest said that the Government agreed to provide a grant to EPSB for an amount not exceeding RM117 million, or an amount equivalent to five per cent of the actual construction cost of the project, whichever is lower.

The grant is to facilitate the development of the project, which will consist of 300 units of PR1MA affordable homes and 320 units of Riverfront serviced apartment, other mixed development, together with the necessary facilities and infrastructure, including water canals and central lake plaza, underpass and ramps.

The company said that the facilitation fund provided by the Government served as an initiative to encourage the implementation of private sector projects, which were expected to bridge the viability gap in private sector investment in the implementation of high value projects.

The project is expected to have huge spillover effects and projects that have high strategic impact to the economic development, added the company.