Menang Corp bags RM260mil UiTM Shah Alam project

MENANG Corp (M) Bhd will receive nearly RM50 million annually over 20 years after building a Universiti Teknologi MARA (UiTM) satellite campus in Puncak Alam, Selangor.

The company stands to get RM39.8 million a year from leasing the site for 20 years, and another RM8.86 million a year to maintain the campus over the same period of time.

This is on top of a RM260 million contract Menang has secured to build the campus from the Ministry of Higher Education (MoHE).

The contract was secured through its 51 per cent unit Rumpun Positif Sdn Bhd, Menang said in a statement to Bursa Malaysia yesterday.

Rumpun Positif signed a concession agreement with MoHE and UiTM to undertake the project based on "Build-Lease-Maintain-Transfer".

It will take about three years to build the campus.

"Upon completion, the campus will be leased to the government/UiTM for 20 years and during the period, Rumpun Positif will also be maintaining the facilities, infrastructure of the campus.

"The concession period of the project is therefore 23 years, inclusive of the three years of construction period," it said.

The campus is located within the existing UiTM Puncak Alam branch campus.

It will cater for two faculties - the Faculty of Architecture, Planning and Surveying and the Faculty of Arts and Design with a total capacity of 3,000 students.

"The total construction cost of the campus is about RM260 million," Menang said.

"The project will have a significant effect on the company after the completion as there will be two major streams of stable cash flow for the next 20 years to cater for our continuing working capital needs as well as providing resources and time for the group to engage in strategic big ticket items," it added.

-- BUSINESS TIMES