Proposed acquisition of toll concessionaires will save billions for tax-payers

  • 📰 malaysiakini
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 51%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

The terms still provide the concessionaires with a limited but reasonable return on their investment.

| The proposed acquisition of four toll concessionaires will save billions of ringgit for tax-payers and highway users while providing the shareholders of the toll concessionaires a limited but reasonable return on their investment to ensure the stability of the fragile financial markets

While a designated special purpose vehicle would be raising a RM6.2 billion debt to finance the acquisition of the four concessionaires, there needs to be a distinction between debt which the government will ultimately have to bear, versus debt which will be self-financed. By acquiring the highways, the RM5.3 billion saved in the future will go toward welfare and development expenditure for Malaysians all around the country, while the highway users can save even more than before.

The toll hike entitlement is shown in the table below using toll rates for Class 1 vehicles as an example:Over the remaining life of the concession, Sprint is expected to generate around RM1.5 billion in profit after tax for the shareholders after settling all its outstanding debts.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 20. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines