PENANG

This will enable financial closure to take place for the first phase of the port project five years after it started operations in April 1999.

Completion of the North Butterworth Container Terminal phase 2B is expected to boost cash flow at Penang Port Sdn Bhd by up to US$24m. The cash flow debt cover of the port’s operating company is expected to remain at 0.2, which is deemed to be ‘comfortable’ given stable cash generation. Indeed, operating cash flow should be sufficient to fund all routine capital expenditure in the near future. Beyond the 2007 financial year, PPSB is expected to be able to generate an annual free cash flow of US$10.818.9m, even when taking into account internal projects and maintenance dredging costs.