Ekovest Construction (ECSB) and Samling Resources (SRSB) have signed a joint venture (JV) and shareholders agreement to develop and upgrade a stretch of the Pan Borneo highway in Sarawak, Malaysia.
The companies will be responsible for the development and upgrading of the stretch from Semantan to Sg Moyan Bridge and the Kuching-Serian roundabout interchanges under a MYR2.11bn ($471.2M) contract.
The Samling-Ekovest JV will be the project implementation vehicle. ECSB, which is a wholly-owned subsidiary of Ekovest, will own a 30% stake in the JV while SRSB will own 70%.
Initial subscription of the JV shares and future investment or shareholders advances will be financed through internally generated funds and/or borrowings from financial institution.
SRSB will sub-contract the entire project to the JV at the same price at which the project was awarded to the company.