Finance ministry rebuts 5 ‘fallacies’ in acquisition of 4 toll highways

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Tony Pua says the proposed acquisition allows the government and highway users to reap RM7.3 billion in savings in the future while ensuring market stability. FMTNews Toll

The government is proposing to acquire four toll concessionaires – LDP, SPRINT, Kesas and SMART.

He said the offer was made on June 21 and had since been accepted by the respective toll concession companies. The exercise is awaiting the approval of the concession shareholders as well as final Cabinet approval.On the argument that acquisition would increase the government’s debt burden by RM6.2 billion and that the money could be better spent for other purposes, Pua said:

“With this self-financed acquisition, the government will save RM5.3 billion to RM6.5 billion in compensation payments.” On the argument that certain highways that were expiring “soon” should be allowed to expire instead of being acquired, Pua said: “These critics may have forgotten that even for the ‘expiring’ highway – specifically referring to Kesas which will expire in 2028 – the government still needs to continue to compensate the concessionaire every year to freeze the toll rates.”

“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.

 

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That mean Government save RM7.3 Billions....Indirectly when we use this highway....The Rakyat Pockets is SAVE !!

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