Gerbang Perdana CIQ Sdn Bhd - 2010

MARC has affirmed the rating of Gerbang Perdana CIQ Sdn Bhd’s (GPCIQ) RM1.7 billion Medium Term Notes (MTN) Programme at AAA. The rating carries a stable outlook. The MTNs are fully secured by Facility Payment Certificates (FPC) issued by the government in lieu of payment of construction receivables relating to the construction of the new integrated Customs, Immigration and Quarantine (CIQ) Complex in Johor Bahru. Accordingly, the rating reflects the government’s ability to make payment on the FPCs. The FPCs represent an unconditional and irrevocable obligation of the government.
 
GPCIQ is a single purpose vehicle incorporated by Gerbang Perdana Sdn Bhd, the main contractor of the CIQ Complex project, to raise financing for its construction. The RM1.3 billion CIQ Complex project consists of the main CIQ building, the JB Sentral (a transportation hub for trains, buses and taxis), a marine customs complex and access roads linking the CIQ Complex to the city. Construction commenced in January 2003 and is slated for completion by June 2011. As of November 25, 2010, the project is 99% completed with estimated costs to completion of RM19 million.

The main CIQ building, recently named Bangunan Sultan Iskandar, officially commenced operations in December 2008, and JB Sentral in June 2010. However, the railway operations in JB Sentral had only commenced in November 2010 due to delays in migration of railway operations from the existing Johor Bahru Railway Station.

Although the project is nearing completion, the drawdown period has been extended to November 8, 2011 from the previous year to accommodate payments for the CIQ project. GPCIQ has met its latest redemption of RM340 million on November 9, 2010. The next redemption of RM138 million is due on November 9, 2011.   MARC opines that the funding requirement to complete the CIQ Complex project is adequately addressed by the MTN Programme’s remaining undrawn limit of RM202 million.