Reference is made to the earlier announcements made by Zelan Berhad (“Company”) dated 2 November 2011, 5 July 2012 and 3 January 2013 respectively in respect of the Concession Agreement dated 5 July 2012 (“Concession Agreement”) entered into between the Government of Malaysia, International Islamic University Malaysia (“IIUM”) and Konsesi Pusat Asasi Gambang Sdn Bhd (“Concession Company”), a wholly owned subsidiary of the Company, for the development and management of Centre for Foundation Studies (Phase 3), International Islamic University Malaysia, Gambang Campus in Pahang (“Project”).

The Company wishes to announce that the Concession Company has on 5 April 2019 received the Certificate of Acceptance (“COA”) issued by IIUM in respect of the Project. Based on the COA, IIUM confirms the acceptance of the availability of the Facilities and Infrastructure of the Project with effect from 1 December 2018.

IIUM further confirms that the following payments shall be on the date of signing of the Supplemental Agreement to the Concession Agreement and Sub-Lease Agreement thereto:

(i)       the payment for the road and electrical (“IIUM Initial Payment”);

(ii)      the sub-lease rental for the availability of the Facilities and Infrastructure (“Availability Charges”); and 

(iii)     the payment for the provision of the asset management services (“AMS Charges”).

IIUM further affirms that the asset management services period will commence retrospectively from 1 December 2018 until the balance on Concession Period of approximately 17 years.

The issuance of COA by IIUM which ultimately giving effect to the commencement of the asset management services and the Availability Charges by the Concession Company is expected to contribute positively towards the financial position of the Company for the financial year ending 31 December 2019. 

This Announcement is dated 5 April 2019.