Melati Ehsan JV firm given more time to fulfil conditions of concession pact

PETALING JAYA: Melati Ehsan Holdings Bhd's 49% joint-venture company B.H.O. Melati Sdn Bhd has been granted an extension of time to fulfil the conditions precedent (CPs) in a concession agreement with the government and Universiti Malaysia Sabah (UMS) entered into on June 3, 2015.
In a filing with Bursa Malaysia yesterday, Melati Ehsan said it has until June 2, 2016 to fulfil the CPs. The initial deadline was March 2 this year.
Last year, the government, represented by the Education Ministry, and UMS granted B.H.O. Melati the concession to undertake the development of Universiti Malaysia Sabah Teaching Hospital in Kota Kinabalu, Sabah.
Pursuant to the concession agreement, B.H.O. Melati was granted the rights and authority to undertake the planning, design, financing, development, construction, landscaping, equipping, installation, completion, testing and commissioning of the facilities and infrastructure of the teaching hospital as well as to carry out the asset management services.
B.H.O. Melati was given nine months to fulfil the CPs – among others, a certified copy of letter of offer with indicative term sheet and other relevant documents issued by lenders proving that it has secured project financing; a certified copy of its board of directors' resolution authorising the acceptance of the project financing; and a copy of land title proving that the land for the project has been registered in the name of the Federal Land Commissioner.
Construction of the project's facilities and infrastructure is expected to be completed within 36 months at a cost of RM652.98 million.