Takeover Of Gamuda Highways Said To Be Unlikely

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The finance ministry has issued an official offer to take over four tolled highways in the Klang Valley, including the LDP and SPRINT.PETALING JAYA: A high-ranking government official has disclosed that the works ministry is in the final stages of considering proposals to ease the burden of highway tolls on the public
He told FMT he expected the Cabinet to make a decision soon and said it was unlikely that the government would opt for the takeover of four highways owned by Gamuda, as announced by Finance Minister Lim Guan Eng early this year
“I understand there is one proposal that will see the reduction of tolls across the board by 36% to benefit everyone rather than just people in the Klang Valley,” said the official, who would not be quoted by name
“The works ministry’s recommendations are due around this time.”He said the idea of taking over Gamuda’s urban highways was only one of several solicited and unsolicited proposals from various quarters
He added that he would disagree with the takeover because the public would see it as a bailout of Gamuda that would bring relief only to users of four highways in the Klang Valley
Referring to Pakatan Harapan’s election promise that it would abolish all tolls, he said the government would not be able to fulfil it
“It does not make sense for the government to turn an asset into a liability,” he said. “Who will maintain all the tolled highways? The maintenance costs will go through the roof.”He said the best the government could do would be to restructure toll agreements
Yesterday, Dr Mahathir Mohamad told a press conference the Cabinet had not rejected the finance ministry’s proposal for the takeover of the Gamuda highways, but he also said the government did not have the financial means to do so
“The ministry says it can raise enough funds to pay for the acquisition by charging during peak hours,” the prime minister said
“We have to see whether that will be enough or not.” - FMT

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