Govt may buy more toll highways - Business News - News Summed Up

Govt may buy more toll highways - Business News


PETALING JAYA: The government is expected to acquire more toll highways in the future, especially those with matured traffic flows and shorter remaining concession years, according to a research house. “We can expect more toll acquisitions to occur in the near term as the government has highlighted that it would use a similar model (to that of the Gamuda and Lingkaran Trans Kota Holdings Bhd (Litrak) toll highways) to acquire the concessions of other toll highways in the future, including inter-city highways,” it said in a report. On Saturday, Finance Minister Lim Guan Eng announced that the government had made a RM6.2bil bid to take over four concessions of toll highways, which could save taxpayers RM5.3bil in compensation to the concessionaires. The takeover of the toll highways would be financed through a special-purpose vehicle under the Minister of Finance Inc, a corporate body under the Finance Ministry (MoF). Shareholders in Gamuda and Litrak seem to have differing opinions on the proposed acquisition of the toll highways by the government.


Source: The Star June 25, 2019 00:00 UTC



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