Gamuda highways takeover time frame not set: report

Gamuda highways takeover time frame not set: report

The Malaysian government has not set a time frame for the takeover of four highways from Gamuda Bhd, said finance minister Lim Guan Eng. An announcement on the matter would only be made once all the goals of the takeover have been met, Bernama reported Lim as saying.

The first condition is that the takeover should not impose any further debt burden and debt service repayment upon the country, the second is to have savings for the government by not having to pay compensation, and the third is to bring savings to the people via reduced toll rates, the finance minister said.

In June, the government had offered RM6.2 billion for the takeover of Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (Sprint), Lebuhraya Shah Alam (Kesas) and the Smart Tunnel. Gamuda’s board of directors voted shortly thereafter to accept the government’s offer, and though it was put on hold in July, the takeover plan has been given the go-ahead at the tabling of Budget 2020.

Gamuda highways takeover time frame not set: report

This was a plan that was first mentioned in February when the prime minister’s office noted its promise 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.

The RM6.2 billion takeover of the four highways will be financed through bond issuance, with congestion charges set to help pay off the debt. This new congestion charge system is expected to apply from January 1, 2020. Lim said during the Budget tabling that the government hopes to abolish the toll system altogether, though nominal charges may still be imposed to cover operational and maintenance costs.

Meanwhile for PLUS Malaysia, the country’s largest tolled highway operator, its managing director Datuk Shahril Ridza Ridzuan stated that sovereign wealth fund Khazanah Nasional has no intention of selling PLUS, though it continues to attract suitors, the latest with the renewed offer from Widad Business Group at RM5.3 billion for a 100% equity interest acquisition, following offers from three other parties.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Haniff Omar on Oct 31, 2019 at 2:20 pm

    I don’t know how Gomen going to give FREE or lower tolls when they have to repay so much of stolen money and debt.

    Before they took over, they thought dedak was only few million. After they took over, they realised past hutang ran up to hundreds of billions and dedak was 1000X worse

    Like or Dislike: Thumb up 11 Thumb down 14
  • Abang2 Basikal Lajak on Oct 31, 2019 at 2:21 pm

    GAMUDA and PLUS management team all get million per month (not year) in remuneration plus no less than 12 month bonus every year.

    It is time we end all this. All highly paid but rakyat suffer so much.

    Like or Dislike: Thumb up 12 Thumb down 12
    • Engineer on Nov 01, 2019 at 12:06 pm

      They are highly paid because of their performance and this reflects in the company’s earnings. Their high salaries have no impact whatsoever to rakyat. Don’t assume we are your level of stupidity.

      Like or Dislike: Thumb up 5 Thumb down 2
  • 4bini on Oct 31, 2019 at 2:23 pm

    Government is taking their sweet time because it is not viable to take over. They need the money to pay the overbloated 1.6 million Government servants.

    Malaysia has 35 mil people we got 1.6 mil Government Servants

    Australia has 35 mil people and only 250,000 Government Servants.

    Like or Dislike: Thumb up 11 Thumb down 17
    • redpilled on Oct 31, 2019 at 5:24 pm

      that’s because Canberra’s definition of what a sivil servant is isn’t the same as ours. if they were to use our definition, they’d have roughly the same numbers as we do d!ckhead.

      ..”Other critics have used another example – Australia – to show that by comparison, our Malaysian civil service is bloated. They point out that people employed in the Australian Public Service (APS) – those who work in public administration roles within Australian government departments and agencies – numbered about 169,000 as at June 30, 2012. Teachers, doctors, soldiers and police are not included as part of their Australian Public Service establishment count. However, let’s do an apples and apples comparison. Total employees in the public sector in Australia – and this is a better comparison with our own definition of the civil service – was 1.89 million in mid-2012 against the population then of 22.7 million.”

      and as CEUPACS put it two years ago:-
      ..”based on the Federal Constitution, Malaysia’s civil service included the armed forces, police, education and health personnel whereas these four sectors were not included in other developed countries.If analysed thoroughly, there are only 500,000 civil servants in the workforce, not including the four sectors which I mentioned before.”

      Like or Dislike: Thumb up 13 Thumb down 0
      • Bro. See these comments and you can clearly see its the same person with his name changing, copy pasting same bullsh*ting racist agenda.

        Like or Dislike: Thumb up 4 Thumb down 0
    • 4binibodoh on Oct 31, 2019 at 5:47 pm

      Its 24.6 million as of 2017, an official figure by it govt. Dont include expats and other foreigners. That is just stupid.

      Like or Dislike: Thumb up 7 Thumb down 0
  • seancorr (Member) on Oct 31, 2019 at 2:50 pm

    All I can say is they better do it before the election arrives. I can see they going to use this as bait for the next elections by saying they gonna do it just before the pilihanraya to sweeten the deal. Five years isn’t long and look at where they government is after the election?

    Like or Dislike: Thumb up 4 Thumb down 3
    • Avenger on Nov 01, 2019 at 10:02 am

      The government is in the sewers busy playing with gutter politics with vindictive with hunts, instead of doing real governing work. Clearly we elected a bunch of idiots.

      Like or Dislike: Thumb up 4 Thumb down 0
 

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