Ekovest Bhd will start phase two development of the Duta-Ulu Kelang Expressway (DUKE) in two weeks at a construction cost of RM1.183 billion, says managing director Lim Keng Cheng.

Phase two, which will entail the construction of an elevated highway that will complement the existing DUKE, will be completed in 2015.  

The DUKE extension will comprise two additional links, namely the Sri Damansara Link and the Tun Razak Link.

Both links are proposed to have dual carriageways and the Tun Razak link will be about nine kilometres in length while the Sri Damansara Link will be seven kilometres long.  

“The expressway will serve as a link between the Middle Ring Road 1 (MRR1) and MRR2,” Lim told reporters after the company’s extraordinary general meeting in Kuala Lumpur today.

The extension will be financed through the issue of senior sukuk and junior bonds of RM2.3 billion.

The remaining proceeds will be used for redemption of the existing junior bonds and sukuk.

Lim said the DUKE extension would reap in additional toll revenue which would be in tandem with the expected increase in traffic volume.

He added that the company was keen to undertake similar projects in southern Kuala Lumpur and have submitted proposals to the government.

“We expect to obtain feedback in the next six months.  

“We will definitely not stop at DUKE 2. We want to expand further,” he added.

For the financial year ended June 30, 2013, Ekovest’s construction division  contributed 87 percent to group revenue while the remaining 13 percent was derived from toll collection.

Revenue declined to RM61.11 million from RM73.04 million in the previous corresponding year while pre-tax profit fell to RM29.9 million versus RM33 million previously.

“Ideally, we want to have 30 percent of our revenue derived from the construction division, 30 percent from infrastructure development and 40 percent from our property business,” said Lim.

To date, the company has RM2 billion in its order book.

- Bernama