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Sembcorp, Ascendas-Singbridge formalise agreements to develop Andhra Pradesh capital
A SHAREHOLDERS agreement for a joint venture company between a Sembcorp and Ascendas-Singbridge consortium, and the Amaravati Development Corporation (ADC), has been finalised for the development of a 684-hectare startup area in Amaravati, the new capital city of Andhra Pradesh.
With the finalisation of the terms, the Amaravati Capital City Startup Area will be developed by the consortium and ADC through Amaravati Development Partners (ADP), of which Sembcorp and Ascendas-Singbridge have a joint 58 per cent stake, with the ADC holding the remaining 42 per cent share.
In a filing with the Singapore Exchange, Sembcorp said that the ADP had on June 7 signed a concession and development agreement with the Andhra Pradesh government "to development rights, licences and required authorisations/concessions for the said startup area and to undertake catalytic developments".
"ADP and the state government of Andhra Pradesh have agreed on a schedule of 12 months for the conditions precedent to be satisfied, which may be extended as set out in the agreement."
The signings took place on the sidelines of the Amaravati Partners Joint Implementation Steering Committee meeting chaired by Minister-in-charge of Trade Relations at Singapore's Ministry of Trade and Industry, S Iswaran and the Chief Minister of Andhra Pradesh, N Chandrababu Naidu.
The startup area lies within the 20-square kilometre Seed Development Area of Amaravati City and will be developed in phases over 15 to 20 years.
Sembcorp shares ended S$0.02 or 0.7 per cent higher at S$2.98 on Thursday before the announcement.