Ringan Automatik Sdn Bhd (PUTRA)

cancelled

On 7 August 1995, Projek Usahasama Transit Ringan Automatik Sdn Bhd (PUTRA) signed a 60-year BOT concession agreement with the government of Malaysia. Under the concession, PUTRA was to design, build and operate a 29-km Light Rail Transit system (LRT) from Lembah Subang in Petaling Jaya to Gombak Terminal, Gombak. PUTRA completed the first 14.4-km section in July 1998, and the second section by June 1999. The project management contractor was Kinta Kellas. Total project costs were estimated at M$5.443 billion (US$2,141 million). PUTRA raised M$1 billion (US$400 million) through a 15-year loan arranged by Bank Bumiputra, and M$1 billion arranged according to Islamic banking practices through three local banks. Initially, PUTRA was a wholly-owned subsidiary of Renong Berhad. After the Asian financial crisis, Renong reported planned to restructure and sell stakes in a number of project companies, including PUTRA. By June 30 1998, PUTRA had invested RM4.069 (US$1,609) of the total project costs with funds coming from shareholder equity, government support loans and private loans. In October 1998, the government announced plans to inject funds into Renong and the possible creation of an Infrastructure Fund. It was discussing a merger of PUTRA and STAR. After some years of operation, both the STAR LRT and the PUTRA LRT faced serious financial difficulties in servicing loans related to construction of infrastructure and purchase of rolling stock. In August 2002, the state owned Syarikat Prasarana Nasional Bhd (SPNB) took over of all assets and operations of STAR (Sistem Transit Aliran Ringan Sdn Bhd) and PUTRA Sdn Bhd (Projek Usahasama Transit Ringan Automatik). SPNB had in November of 2001 purchased the outstanding debts of STAR and PUTRA totaling about RM5.5 billion via the issuance of RM5.5 billion fixed rate serial guaranteed bonds to the lenders of both companies. Upon completion of the second phase which was scheduled for June 2002, the operations of the two systems were to be integrated and improved.