Budget 2020: Cabinet OKs MoF plan to take over four highways


KUALA LUMPUR: The government is going ahead with the plan to acquire four highways from Gamuda Bhd.

The takeover, first announced by the Finance Ministry in June, has been approved by the Cabinet, Lim Guan Eng said in Budget 2020 speech today.

Under the plan, the government will pay RM6.2bil to acquire Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway (SPRINT) and SMART Tunnel (SMART).

Gamuda is a substantial shareholder in all four highways.

The takeover will be funded via government-guaranteed borrowings.

"With the introduction of congestion charges that will be lowered by up to 30% of the present toll rates during near peak and normal hours and free during off-peak hours, this will provide a savings to the highway users nearly RM180mil a year, or RM2bil over the respective concession periods," Lim said.

There will be no extension of the existing concessions.

"The acquisition of these highways will not burden the government because the financing, operations and maintenance cost will be entirely funded by the collection of toll and congestion charges without requiring any future funding by the government," Lim said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Highway , Kesas , LDP , MoF Inc

   

Next In Business News

Consolidation among banks beneficial, spurs innovation
Maybulk to diversify into grocery retail business
Swift Haulage signs MoU with Volvo Trucks Malaysia
Ringgit under pressure as oil retreats and China cuts interest rates
Datasonic gets additional RM31.39mil contract
Protasco secures RM299.3mil road upgrading works contract
Mida, Perodua launch partnership to facilitate digitalisation of local automotive suppliers
Maybank appoints Siew Chan Cheong as group chief strategy officer
JCorp, Tiong Nam to develop logistics park in Sedenak Technology Valley
Glove counters slump, dominate active list on Bursa

Others Also Read