KUALA LUMPUR (June 15): Majuperak Holdings Bhd said it is set to undertake solid waste management and public cleansing services in Perak jointly with another firm, Mainiza Teknitek Recowaste Sdn Bhd (MTR). 

In a bourse filing today, the group said the Perak government has agreed to appoint MTR in collaboration with Majuperak’s wholly-owned unit Majuperak Utilities Management Sdn Bhd (MUM) as the concession company for the project.

The joint-venture (JV) agreement presents the opportunity for Majuperak to venture into waste management services.

With MTR in the JV, Majuperak has the potential to acquire full privatisation of the waste management concession in Perak, it added.

Majuperak said the project implementation will be divided into four phases including gathering data and information from local authorities by MTR for the purpose of conducting due diligence in pursuit of the project in Phase 1.

In Phase 2, MTR will sign management agreements with state authorities until the execution of the tripartite agreement in which MTR is named as a concessionaire to undertake the project in each of the district, municipality or city in Perak.

The tripartite agreement will involve governments and authorities at both the state and federal levels, the group explained.

Majuperak said Phase 3 will see MTR sign a concession agreement as determined by the federal government, while Phase 4 involves the commencement of full privatisation.

MUM will be entitled to receive a monthly tribute payment during Phase 3 and Phase 4,” the group said.

Shares of Majuperak settled one sen or 2.53% lower at 38.5 sen today, with 1.18 million units done. This valued the group at RM107.5 million.