Cabinet to decide on takeover of Plus, four highways next week, says Lim
Finance Minister Lim Guan Eng says the cabinet will decide on the proposed takeover of highway concessionaire Plus Malaysia Bhd and toll roads next week.
Speaking to media today, he said the government needs to make a speedy decision so it will not be burdened by the mounting compensation to the highway concessionaire following the government's decision to freeze highway tolls.
"The cabinet (will make) a decision next week. I think it is likely by next week," he said...
Finance Minister Lim Guan Eng says the cabinet will decide on the proposed takeover of highway concessionaire Plus Malaysia Bhd and four other toll highways next week.
Speaking to media today, he said the government needs to make a speedy decision so it will not be burdened by the mounting compensation to highway concessionaires following the government's decision to freeze highway tolls.
"The cabinet (will make) a decision next week. I think it is likely by next week," he said.
Lim, however, declined to elaborate on the proposals by three ministries on the takeover of these highways.
Plus highway users can expect to pay an average of 18 percent less for tolls starting next year.
The 18 percent toll discount will save highway users RM1.13 billion in 2020, and RM43 billion for the balance of the concession period up to 2038
Three ministries that involved in the highways takeover are Finance Ministry, Economic Affairs Ministry and Works Ministry.
"Let us wait for the cabinet's decision on this," said Lim after attending a financial literacy activity at Putrajaya.
Lim (below), however, said one of the proposals is to reduce the highway toll rate by 18 percent to reflect the 2020 Budget announcement.
He said this is at least an important first step towards the abolition of toll highways pledged by Pakatan Harapan in its 2018 manifesto.
Plus is 51 percent owned by Khazanah, and the Employees Provident Fund at 49 percent.
According to the news report, the MoF is believed to be eyeing Khazanah's stake as Putrajaya seeks to prevent the much sought-after asset from falling into private companies.
Citing sources, it also said the MoF would buy the stake in the country's biggest highway concession holder and retain the asset within the public sector, while the proposed acquisition would be brought to the cabinet for deliberation soon.
Putrajaya had previously confirmed receiving four official offers from interested parties to take over Plus, namely Widad Group Bhd, Maju Holdings Sdn Bhd, RRJ Capital and businessperson Halim Saad.
Beside the North-South Expressway operated by Plus, the government was also discussing the possibility of the takeover of four other highways.
They are Shah Alam Expressway (Kesas), Damansara-Puchong Expressway (LDP), Sprint Expressway (Sprint) and Smart Tunnel.
During the tabling of Budget 2020, Lim said the cabinet had approved the Ministry of Finance’s (MoF) proposed acquisition of the four Klang Valley highways.
The government would pay RM6.2 billion to acquire the four highways.
