Highway takeover details being worked out, says PM

Cabinet has yet to work out the details of its plan to take over four highways in the Klang Valley, said Prime Minister Dr Mahathir Mohamad.

"That will be worked out later," said Mahathir during a press conference after the Budget 2020 speech.

Cabinet has given the provisional nod for the Finance Ministry to acquire four highways - Shah Alam Expressway (Kesas), Damansara-Puchong Expressway (LDP), Sprint Expressway (Sprint) and Smart Tunnel.

The goal was to lower toll charges during off-peak hours and stop the need for government "compensation payments" to toll operators.

On the government's plans to reduce toll charges for roads operated by Plus, Mahathir said details are still being worked out as well.

"But we have indicated (the public will enjoy) savings (through) the lowering of toll charges by at least 18 percent," he said.

Plus Malaysia Bhd - the country's biggest tolled road operator - is currently owned by Khazanah Nasional Bhd and EPF.

Plus currently has about RM30 billion in debt and is owed about RM2.7 billion in compensation by the federal government.

Maju Holdings Sdn Bhd has recently offered to acquire Plus at RM34.9 billion - which entails assuming the debt and forking out RM3.5 billion cash.

The company also promised to lower toll charges by up to 36 percent. Currently, Maju Holdings operates the Maju Expressway.