Reference is made to the earlier announcements made by Zelan Berhad (“Company”) dated 2 November 2011, 5 July 2012, 3 January 2013 and 5 April 2019 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 31 May 2019 entered into a Supplemental Agreement (“Supplemental Agreement”) with the Government of Malaysia and IIUM. Among the salient terms of the Supplemental Agreement are as follows: 

(i) The total Availability Charges is revised to RM715,492,391.07; 

(ii) The total Asset Maintenance Services Charges is revised to RM408,164,062.43; 

(iii) The total Asset Management Programme is revised to RM113,706,438.00;

(iv) The Concession Cost is revised to RM359,716,014.20; and

(v) The Concession Company shall carry out minor defects works within 6 months from 1 May 2019. 

With the execution of the Supplemental Agreement, the monthly Availability Charges (“AC”) and the Asset Maintenance Services Charges (“AMSC”) including the arrears from 1 December 2018 will be paid to the Concession Company.

The execution of the Supplemental Agreement and the receipt of the AC and AMSC payments are expected to contribute positively towards the financial position of the Company for the financial year ending 31 December 2019.  

This Announcement is dated 3 June 2019.