Kidex to bear the losses of aborted expressway: report
Date：2015/04/08
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Works Minister Datuk Seri Fadillah Yusof said the developer of Kinrara-Damansara Expressway (Kidex), Kidex Sdn Bhd, will bear the losses of the RM2.42 billion aborted highway project.
Kidex Sdn Bhd is 70 percent owned by Zabima Engineering Construction, while the remaining 30 percent is held by Emrail.
“They (private sector) will bear the losses because they are the one that came up with the proposal,” he said after officiating yesterday’s seminar on Ensuring Climate Resilience of Building and Infrastructure.
“When it comes to the business proposal, they already knew that there is a risk of the proposal being approved or rejected,” he said, adding that the cancellation of the project created confusion to the developer.
“In terms of the developer, they are currently quite confused with it (the cancellation), but that is one of the risks in doing business.”
A search on Companies Commission of Malaysia (SSM) revealed that Kidex Sdn Bhd posted a net loss of RM15,758 during the financial year ended-31 December 2013 (FY2013), up from FY2012’s RM860.
The developer received approval for Kidex when it inked the concession agreement (CA) in November 2013 with the Federal government, in which it also received an extension to its CA until November this year.
Selangor Mentri Besar Mohamed Azmin Ali, however, announced that the state will stick with its decision to cancel the 14.9km fully elevated expressway following a recent discussion with the members of parliament, assemblymen and residents as well as the Malaysian Highway Authority (LLM).
Azmin previously explained that the cancellation is due to the concessionaire’s failure to comply with three conditions that were set by the 14 February deadline. These include an independent Social Impact Assessment, Environmental Impact Assessment and Traffic Impact Assessment to prove that the expressway is beneficial to residents.
However, Fadillah claimed that all conditions were met, with the relevant assessment reports submitted in July 2014.
“For us (federal government), we still see it (Kidex) necessary, but we will let the rakyat and the Selangor state government to decide,” said Fadillah.