PETALING JAYA: The federal government’s settlement to a restructuring proposal involving 4 freeway concession firms within the Klang Valley presents hope for the broader freeway sector, says RAM Score Providers Bhd.
The proposal, which implies no extra toll charge hikes for 4 highways within the Klang Valley, includes freeway concessionaires Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd (SMART Tunnel), Kesas Sdn Bhd (Kesas Expressway), Sistem Penyuraian Trafik KL Barat Sdn Bhd ( Dash Expressway) and Lingkaran Trans Kota Sdn Bhd (Damansara-Puchong Expressway or LDP).
In an announcement yesterday, RAM Rankings stated continued toll hike deferment in a single yr was reportedly costing the federal government RM2.25bil in compensation, whereas its narrowing fiscal headroom makes the abolition of tolls implausible, contemplating the excessive compensation sums payable.
“Accordingly, Amanat Lebuhraya Rakyat Bhd (ALR), in providing to amass highways partly owned by Gamuda Bhdhas, in our view, signaled a stronger intent by the federal government to noticeably handle the restructuring of toll charges throughout highways by end-2023, based mostly on a nationwide parliamentary response by the Works Ministry.
“If profitable, this restructuring mannequin may function a blueprint for additional renegotiations of different expressway concessions,” it stated.
The ranking company stated that ALR’s proposed answer to the deadlock within the sector, by way of the acquisition of 4 highways partly owned by Gamuda for RM5.48bil, would obtain totally different however complementary aims.
This consists of decreasing the burden on the general public from a value inflation perspective.
The proposal additionally gives some respite in opposition to the federal government’s ballooning annual compensation invoice for non-revision of scheduled toll charges.
It additionally takes into consideration the pursuits of different stakeholders, together with lenders and shareholders, RAM Rankings stated.
The company additionally famous that the tenures of the 4 freeway concessions are anticipated to be restructured and lengthened. — Bernama