No toll rate hikes for 4 Klang Valley highways - PM
Toll rates for four Klang Valley highways will remain unchanged until the end of the concession period, said Prime Minister Ismail Sabri Yaakob.
The highways are the Shah Alam Expressway (Kesas), Smart Tunnel, Sprint Highway, and the Damansara Puchong Expressway (LDP), Bernama reported...
Toll rates for four Klang Valley highways will remain unchanged until the end of the concession period, said Prime Minister Ismail Sabri Yaakob.
The highways are the Shah Alam Expressway (Kesas), Smart Tunnel, Sprint Highway, and the Damansara Puchong Expressway (LDP), Bernama reported.
The premier said the government expects to save RM4.3 billion in compensation paid to concessionaires starting Jan 1 through the restructuring of the four related highway concessionaires.
He did not provide details of the restructuring exercise.
However, concession owner Gamuda Bhd announced to Bursa Malaysia that it had received a conditional offer by Amanat Lebuhraya Rakyat Berhad (ALR) to acquire its shares in Kesas Holdings, Sprint Holdings and Smart Holdings.
ALR is a not for profit firm incorporated with the mandate to assist the government in restructuring the tolled highway concessions.
ALR’s mandate is to maintain the current toll rates and accelerate the return of the concessions to the government upon settlement of any debts.
The firm offered to buy Kesas for RM1.24 billion, Sprint for RM1.808 billion, Smart for RM313 million and Litrak (and in turn the LDP) for RM2.119 billion. This amounts to RM5.48 billion.
The offer is to be executed by July 31.
2019 proposal
In October 2019, the Pakatan Harapan cabinet approved the takeover of the four highways.
That year, the Minister of Finance Inc (MOF Inc) issued letters to Gamuda Bhd and its associated companies to acquire the toll concessions for RM6.2 billion, before deducting debts assumed or RM4.5 billion cash.
Gamuda owns 70 percent of Kesas Holdings, 52 percent of Sprint Holdings, 44 percent of Litrak Holdings, which in turn owns the LDP, and 50 percent of Smart Holdings.
Earlier that year, it was reported that Gamuda Bhd had proposed that the takeover involved the formation of a highway trust.
The trust will issue bonds to fund the purchase.
To fund the bond payments, tolls will remain but will not go up as scheduled in the concession agreement, The Edge then reported.
In a related matter, Ismail Sabri said the move is part of a “continuous effort to ensure Keluarga Malaysia is not burdened”.
“The savings can be used for national infrastructure development programmes and other amenities which must be prioritised for the good of Keluarga Malaysia,” he is reported as saying in a statement.
In 2017, the four highways had traffic volumes of about 350 million vehicles.
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