PM: Proposed takeover of four highways not yet final

Prime Minister Tun Dr Mahathir Mohamad attends the closing of the 2019 TVET Conference in Putrajaya July 9, 2019. — Picture by Shafwan Zaidon
Prime Minister Tun Dr Mahathir Mohamad attends the closing of the 2019 TVET Conference in Putrajaya July 9, 2019. — Picture by Shafwan Zaidon

PUTRAJAYA, July 9 — Prime Minister Tun Dr Mahathir Mohamad said the government has not settled on whether it will proceed with the proposed buy-out of four toll concessions.

“No decision has been made yet,” he said briefly after closing the 2019 Technical and Vocational Education and Training conference at the JW Marriott Hotel here today.

Finance Minister Lim Guan Eng previously announced that the government had made a RM6.2 billion offer to take over the four tolled highway concessions in a move that would save taxpayers RM5.3 billion in compensation for freezing toll rates.

The concessionaires involved are Kesas Sdn Bhd (Kesas), Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint), Lingkaran Trans Kota Sdn Bhd (Litrak) and Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd (Smart).

Gamuda Berhad, which holds major stakes in all four firms, then said in a recent Bursa Malaysia filing that it was agreeable to the government’s offer, stating it was fair and appropriate.

The move is part of the Pakatan Harapan manifesto pledge to eliminate tolled highways in the country.