Gov't takeover of four highways not a done deal yet

The owners of four major highways may have agreed to the government's offer to take over their infrastructure, but it is not yet a done deal as it must clear the final hurdle, which is the cabinet.

Prime Minister Dr Mahathir Mohamad, when asked about the acceptance of the offers, said a decision had yet to be made to seal the deal.

"We haven't made (a decision)”, he told journalists in Putrajaya today.

Earlier today, Finance Minister Lim Guan Eng told the Dewan Rakyat that the deal will still be screened one more time even though it was accepted by the companies.

"The conditional offer, when it is approved by shareholders and concessionaires of the four highways, is still subject to the cabinet’s final approval," he said.

The government is in the midst of taking over the Sprint Expressway, the Damansara–Puchong Expressway (LDP), the Shah Alam Expressway (Kesas) and Stormwater Management And Road (Smart) tunnel for RM6.2 billion.

"The four holding companies - Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint), Kesas Sdn Bhd (Kesas), Lingkaran Trans Kota Sdn Bhd (Litrak) and Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd (Smart), have accepted the offer.

Gamuda Bhd has a significant stake in the four highways.

After taking over the four highways, the government hopes to eliminate the profit element and impose a congestion charge at a lower rate compared to the current toll system, which will vary according to peak and non-peak periods.

Lim said users of the four highways will save around RM180 million a year, while the government could save RM5.3 billion in compensation required to freeze the toll rates under the current system.

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