PLUS received’t be offered, bids not enticing sufficient, says Tun M – concessionaire to get 20-year extension

Prime minister Tun Dr Mahathir Mohamed has confirmed that the government will not be selling PLUS, and says the choice to not achieve this is as a result of not one of the bids which have been made are enticing sufficient, The Star reviews.

“We now have studied all of the bids made by the non-public sector, and likewise the bid by Khazanah Nasional. We determined that one of the simplest ways is to not promote PLUS to anyone, however to maintain it with Khazanah Nasional and Workers Provident Fund (EPF),” he mentioned.

He added that PLUS might be given a 20-year extension of its toll concession, however the deliberate 18% reduction in the toll rate – as decided throughout Budget 2020 – could be carried out, and the concessionaire wouldn’t be making that a lot regardless of the 2 decade extension.

“They’ve to scale back the toll charge by 18%, however keep in mind, 18% is about at at the moment’s charge. Meaning, in 20 years’ time, the 18% in comparison with the ringgit charge then won’t be very excessive. Visitors will improve, however the worth and buying energy of the ringgit will go down, so what they earn afterwards (in 20 years) is just not as large as individuals assume they’ll get. It’s because we’re taking a look at it at present charge, and will probably be a flat charge minus 18%,” he mentioned.

The nation’s sovereign wealth fund Khazanah, through UEM Group, owns 51% of PLUS, with EPF holding the remaining 49%. Highways operated by PLUS, which is the nation’s largest freeway concessionaire, are the North-South Expressway (NSE), Second Hyperlink Expressway, Penang Bridge, North-South Expressway Central Hyperlink, Butterworth-Kulim Expressway and Seremban-Port Dickson Freeway.

The federal government obtained four offers final 12 months for the takeover of PLUS, these being from Widad Group, Maju Holdings, RRJ Capital and Tan Sri Halim Saad’s car Karongsa Private Capital.

There was no point out of the proposed takeover of four Klang Valley highways operated by Gamuda. Earlier, it was reported that the federal government had not decided but on the matter. The highways operated by Gamuda are the Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (Dash), Lebuhraya Shah Alam (Kesas) and the Good Tunnel.

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