KUALA LUMPUR, Oct 31 — Highway concessionaire PLUS Malaysia Berhad has gone on record to clarify recent news reports on its debt and operational efficiency, which it says are inaccurate and misleading.
Managing director Datuk Azman Ismail said the reports on private firms seeking to take over the company had claimed only RM700 million of PLUS’ debt has been paid, despite it rising up to 10 times the value of the original RM3.4 billion tender price in 1988.
“The reports also said when (Renong Berhad former executive chairman) Tan Sri Halim Saad left the highway operation nine years ago, PLUS’ borrowings stood at RM6 billion, five times less than its current debt,” he said in a statement.
Azman clarified that when Syarikat Danasaham Sdn Bhd took over UEM Group Berhad (UEMG) from Renong Berhad and privatised UEMG in 2001, PLUS was already a debt-ridden company with a total borrowing of RM16.5 billion as of December 31, 2001.
“This amount is almost three times higher than the figure quoted in Tan Sri Halim’s statement.
“UEMG under the new shareholder Danasaham, successfully listed PLUS shares on the Kuala Lumpur Stock Exchange through an IPO exercise in 2002 at the value of RM12.75 billion, then inly pared down PLUS’ debts substantially to RM7.2 billion,” he said.
Azman also dismissed the notion that private companies could operate PLUS more efficiently, stating that as the largest highway concessionaire in South-east Asia, it continues to drive investment into the latest technologies to develop smart highways, such as the new RFID toll-payment system.
“PLUS manages over 1,100km of highways with 8,303 slopes, two tunnels (i.e. Meru & Menora Tunnels), 741 bridges (including major bridges like the First Penang Bridge, Johor Baru causeway, Linkedua) and 6,187 drainage/culverts, all of which needs constant maintenance, with PLUS undertaking more than 10,000 inspections annually.
“Apart from that, we continue to rejuvenate and enhance our 29 Rest and Services Areas as well as 50 lay-bys, four overhead bridge restaurants (OBR), 114 interchanges, 104 toll plazas and 1,212 toll lanes, of which the cost of maintenance works and upgrading projects are fully borne by PLUS,” he said.
The managing director added it is also worth noting that PLUS’ toll rates have not increased since 2005, with the toll rate per kilometre for the North-South Expressway and ELITE Highway one of the lowest in Malaysia.
“We remain committed in our relentless efforts to provide our customers a safe, comfortable and enjoyable highway experience,” he said.
