KASEH LEBUHRAYA SDN. BHD. The Group’s highway project undertaken by a wholly-owned subsidiary, Kaseh Lebuhraya Sdn Bhd (“KASEH”), involves the design, construction, operation, management and maintenance of, and collection of toll on, a new highway linking Kajang and Seremban measuring approximately 48 kilometres (“Highway Project”), on a build, operate and transfer method of privatization. The dual three-lane Highway will provide an alternative route for road users between Kuala Lumpur, Kajang, Seremban and vice versa. It is designed to pass through Semenyih, Pajam, Mantin, Temiang and link to the Seremban By-Pass. It will serve as an effective traffic dispersal for the highly congested Kajang and Seremban town centers. Click to enlarge map. The Highway Project has achieved several stages of completion. “Package 1A” from the SILK Interchange to Kajang Selatan has been completed and opened to the public. For “Package 1B” from the Kajang Selatan Interchange to Pajam Interchange, earthworks and major drainage have been completed. As for “Packages 2A and 3” from Pajam Interchange to Paroi, all land acquisitions have been completed. Part of the alignment between Mantin Interchange and Setul Interchange has been approved for realignment. Given the challenges faced by the Group in securing the necessary funding to complete the construction of the highway, Antah had invited IJM Corporation Berhad (“IJM”) to participate in the highway concession to ensure successful completion of the Highway. Accordingly, KASEH and IJM had on 30 May 2005 entered into a Memorandum of Agreement (“MOA”) to facilitate IJM in participating in the highway concession by way of subscription of direct equity and quasi-equity via a new company incorporated under the name Lebuhraya Kajang Selatan Sdn Bhd (“LEKAS”). The Board believes that the participation of IJM is well suited and key in ensuring successful completion of the highway as IJM has the necessary means and expertise in construction and in highway projects. * Click to view images