Public-listed Kuching-based Zecon Engineering Bhd is taking over the long-delayed second bridge project over Sungai Sarawak in Kuching as part of a rescue package from the original concessionaire-cum-contractor Zalpoint Corporation Sdn Bhd.

Zecon chairperson Dr Hatta Solhi, who is a former deputy state secretary, confirmed this today.

He stressed, however, that the take-over is still subject to the approval of the Kuala Lumpur Stock Exchange and the Foreign Investment Committee (FIC).

But market analysts see nothing is likely to stand in the way of such an approval, as Zecon has the expertise and the resources to undertake it, and that the terms are understood to be favourable in the long-term interests of the company.

Zecon is also involved as a joint venture partner with Japanese construction company in building the RM600 million new campus of University Malaysia Sarawak (Unimas) in Kota Samarahan as well as the Matang-Rambungan Expressway.

33-year concession

The RM140-million second bridge project at Tanah Puteh (site of the old Kuching port) was privatised to Zalpoint more than three years ago with payment in kind from the state government through the alienation of a sizeable plot of prime land.

Zalpoint was also awarded a 33-year concession to collect tolls as part of the deal.

However, the company encountered several problems, including cash flow, and subsequently the

project stalled.

Malaysiakini understands that the state government was approached for assistance to get the project started again, and eventually Zecon stepped in.

According to Hatta, Zecon would need to finance the project from its own funds.

"There will be no more payment from the government for the remaining works," he added, without giving details.

He disclosed that with the take-over exercise, Zecon had also undertaken all the liabilities of Zlapoint estimated at RM110 million.

He added that Zecon would also collect tolls for the next 33 years but indicated that the toll charge would be minimal, "probably about RM1 repeat RM1 per private vehicle."