Maju takeover of PLUS will reduce Putrajaya’s burden, says Nazri

The tourism minister says compensation to be paid to the concessionaire can then be channelled for the public's benefit.

KUALA LUMPUR: A proposal by Maju Holdings Sdn Bhd to take over the North-South Expressway Project (PLUS), through the purchase of UEM Group Bhd and Employees Provident Fund (EPF) shares estimated at RM36 billion, should be given due consideration as it would reduce the federal government’s burden, said Tourism and Culture Minister Mohamed Nazri Aziz.

The Umno supreme council member said the federal government has to fork out RM900 million in compensation to avoid increasing toll rates as agreed upon by the previous administration.

Increasing toll rates, he added, would only burden highway users.

“We have to crack our heads every time we (cabinet members) discuss increasing the toll rates. If we do not allow the highway concessionaires to increase toll, the federal government will have to pay RM900 million.

“As such, I fully support such a proposal because we will not have to pay the RM900 million and almost RM1 billion could be saved for the benefit of the public,” he told reporters after launching the Keretapi Sarong 2017 #SayangMalaysia programme here today.

Recently, Maju Holdings Group executive chairman Abu Sahid Mohamad expressed his intention to acquire a 51% share held by UEM Group Bhd and EPF’s 49% share in PLUS Malaysia Bhd, thereby taking over the country’s major highways, as well as several other highway operators such as Expressway Lingkaran Tengah Sdn Bhd (ELITE) and Linkedua Malaysia Bhd (LINKEDUA).

The two largest shareholders of PLUS in a joint statement recently said they were in the process of studying the proposal which was submitted by Evercore Asia Ltd on behalf of Maju Holdings, but refused to elaborate further. -FMT