Download proposed joint venture with aspl m3a limited to acquire parcels c

Merekabentuk dan Membina Kerja-Kerja Membaikpulih Muara Sungai dan Kuala Sungai
Pahang, Pahang Darul Makmur (Fasa 1)
Malaysian Resources Corporation Berhad (“MRCB” or “the Company”) is pleased to announce
that it had on 7 November, 2008 received a Letter of Award dated 23 October 2008 from the
Government of Malaysia vide Jabatan Pengairan Dan Saliran Malaysia (JPS) for the
“Merekabentuk dan Membina Kerja-Kerja Membaikpulih Muara Sungai dan Kuala Sungai
Pahang, Pahang Darul Makmur (Fasa 1) (“the Project”), for RM258.17 million.”
Information on the Project
The contract sum of the Project is RM258,169,614.45 and is to be completed by 31 October
2011.
Sungai Pahang, located in the state of Pahang, is the longest river in Peninsula Malaysia. It has
a catchment area of 29,300 sq. km. The river transports large amount of sediment from the
upper catchment which is partly deposited in the lower reaches and partly flushed to sea.
Apart from fishing, a large part of the local population is also involved in other downstream
activities such as boat and gear repairs, marketing, cold storage facilities, etc.
The objectives of the Project include overcoming the siltation problems at the Sungai Pahang
rivermouth in order to enable the safe navigation of fishing vessels to and from the Lembaga
Kemajuan Ikan Malaysia complex at all times.
Works undertaken shall be the part construction of the full northern breakwaters (at the Sungai
Pahang rivermouth) with the necessary temporary protection at the breakwaters head;
guidebanks at the river mouth in Tg Agas, providing safe navigation channels and construction
of coastal and river protection works.
Financial Effect
The Project is not expected to have any material impact on the earnings and net tangible
assets of MRCB for the financial year ending 31 December 2008. However, the Project is
expected to have a positive effect on the future earnings of the Company.
The Project will be funded by internally generated funds and banks borrowings. The increase in
the Company’s gearing will depend on the amount of project financing required over the tenure
of the Project and is temporary in nature, which would reduce accordingly upon completion of
the Project.
Directors’ and Substantial Shareholders’ Interest
None of the Directors and substantial shareholders of MRCB has any interest, direct or indirect
in the Project.
After careful consideration, the Directors of MRCB are of the opinion that the acceptance of the
Project is in the best interest of the Company.
Risk Factors
Risk factors affecting the Project include but are not limited to execution risks such as
availability of skilled manpower and materials, changes in price of materials, and also changes
in political, economic and regulatory conditions. As environmental rehabilitation is one of the
Company's core business activities, MRCB has throughout the years established its track
record and expertise in undertaking such developments to completion. The Teluk Cempedak
Beach Rehabilitation Project was the first in Asia to use the PEM system and it was concluded
ahead of schedule. The Pulau Tioman Design, Built and Reconstruction of Beaches is on track
and expected to complete as scheduled. Apart from the Kuala Pahang Project, MRCB is also
undertaking similar works at the Sungai Kuantan.
As such, the Management of MRCB is of the opinion that the Company is able to mitigate the
aforementioned risk factors.
c.c Securities Commission