Kuala Lumpur-Karak Highway

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In October 1994, MTD Prime Sdn Bhd started building a 60km toll highway between Gombak (Selangor) and Karak (Pahang). MTD Prime holds a 27 year ROT concession to rehabilitate and operate the road, with an additional 5 year operation period for a 5km Genting extension. Phase I of the road was completed ahead of schedule in June 1998. Phase II was started at the end of 1997 and was expected to open in June 1999. The total project costs M$450 million (US$ 176 million), with funding from equity, a M$250 million syndicated loan and M$ 127 million soft loan from the Government. Project shareholders are MTD Construction, Bintang Bestari Sdn Bhd and an Indonesian company. The government extended the concession by 6 years in September 2002, and in October 2002, the government reimbursed the concessionaire approximately $11.4m (RM43.26m) because rates being charged were lower than those proposed in the original agreement. The parties also agreed that the rates will be increased every five years instead of every two years as originally stated in the contract.