Government's rationale to acquire tolled highways


Gamuda's expertise in building highways as reflected in the LDP project.

Government's 11 points explanation to buy over highway concessions 

Below is the full statement issued by Prime Minister's Office


1. Pakatan Harapan has promised in its election manifesto to take steps to acquire highway concessions and abolish toll collection in stages, in accordance to the terms of the concession agreement. 

 2. This is to alleviate the high cost of living for commuters. 

3. I am pleased to announce that as a first step, the Government has commenced talks with Gamuda Berhad to negotiate the acquisition of highway concession in which the company has a majority stake. 
 4. The highways are the Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (SPRINT), Lebuhraya Shah Alam (KESAS) and SMART Tunnel. 

5. Upon successful takeover of the highways, the Government intends to abolish the existing toll mechanism. 

6. In its place, a ‘congestion charge’ will be introduced where commuters will only pay a ‘congestion charge’ equivalent to the existing toll for 6 hours of “peak” period a day. 

7. During the “off-peak” period between 11pm and 5am, commuters will travel on the highway for free. 

 8. At other ‘normal’ travelling hours, commuters will enjoy discounted rates up to 30% compared to existing toll rates. 

9. The revenue collected from the ‘congestion charge’ will go towards the operations and maintenance of the highways and repayment of borrowings. 

 10. Any surplus collected will then be channeled into a public transportation fund to improve the quality of public transport in Malaysia. 

11. Further details on the proposed exercise will be announced by the Finance Minister at the appropriate time. 

PRIME MINISTER’S OFFICE PUTRAJAYA 23 FEBRUARY 2019 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

Oil lower as banking turmoil dampens sentiment
Cryptoverse: Bitcoin passes the bank stress test
Khazanah Nasional hopes for wider options to decide on MAG
AICB, GEFI to jointly to host Ethical Finance Asean 2023 Summit
CMM launches CVC programme to spur investments in MSMEs
Malaysian banks are well positioned to face potential asset quality deterioration - RAM Ratings
Oil lower as banking turmoil holds down sentiment
Scientex enters JV in foray into Indonesian property project
Bursa gains as bank stocks retrace losses
Khazanah Nasional records RM1.6bil profit in FY22

Others Also Read