Khazanah and PLUS to announce details on toll restructuring

KUALA LUMPUR: Khazanah Nasional Bhd said it will work closely with the government and PLUS Malaysia Bhd on the toll restructuring initiative to ensure it is implemented effectively for the benefit highway users, as well as other key stakeholders including holders of PLUS’ debt.

“We recognise the complexity in meeting the demands of multiple key stakeholders, especially the people of Malaysia," managing director Datuk Shahril Ridza Ridzuan said in a statement today.

"We now move forward to discuss the implementation of the initiative with all other stakeholders,” he said.

Khazanah via wholly owned UEM Group Bhd has a 51% equity interest in PLUS with the Employees Provident Fund (EPF) holding the remaining 49% stake.

The government on Thursday announced the decision to reduce toll rates on highways operated by PLUS by 18%, and for Khazanah and EPF to remain as shareholders of the concessionaire.

The reduced toll rates will remain fixed throughout the concession period of the highways, which will be extended by 20 years from 2038 to 2058.

In addition, all outstanding and future toll compensation will be waived, providing an estimated savings of RM42bil for the government.

The decision came after the government had received several unsolicited bids from various parties to take over PLUS.

"The decision to reduce the toll rates for PLUS highway users while providing considerable savings for the government is a significant move," Shahril said.

"Khazanah and PLUS will announce further details on the toll restructuring initiative after further consultation with the government and other key stakeholders," he added.

The 18% toll rate reduction, announced by the government, will be applicable on highways operated by PLUS - namely the NorthSouth Expressway, North Klang Valley Expressway, North–South Expressway Central Link, Seremban-Port Dickson Highway, East Coast Expressway Phase 2, Second Link Expressway, Butterworth-Kulim Expressway and the Penang Bridge.