Govt studying DAP proposal to buy back North-South Expressway and end toll collection in six years
The government is studying the DAP proposal that the government buy back the North-South Expressway to end toll collection completely in six years.
In reply to my query during the winding up of the committee stage debate for the RM60 billion mini-budget, the Second Finance Minister, Tan Sri Nor Mohamad Yakcop said the government is studying the DAP proposal to return the expressway to the people.
The proposal, a comprehensive, practicable and creative one formulated by the DAP Ops RESTORE (Restructure Toll Rates & Equity) Team, after consultations with legal experts, investment bankers as well as the general public, has the following features:
1) Impose no further increase in North-South Expressway toll rates.
2) End toll collection after 2015 instead of 2020.
3) Create RM14 billion savings for Malaysians from 2009-2015 – saved either (i) by Malaysians using the highway because of no further toll rate increases or (ii) in terms of compensation which would have to be paid by the Government to PLUS Expressways.
4) Incur no additional cost for the Malaysian Government or Malaysian tax-payers
The North-South Expressway ‘buy-back” scheme, worked out by the DAP RESTORE Team, helmed by The Chi Chang, economic adviser to DAP Secretary-General and Tony Pua, DAP MP for Petaling Jaya Utara last month, was based on the following mechanics:
1) PLUS is listed on Bursa Malaysia at a price of RM2.88 per share and a market capitalisation of RM14.4 billion (24th February).
2) The Government of Malaysia, via Khazanah owns 65% of PLUS.
3) PLUS has outstanding net debt amounting to RM8.5 billion.
The buy-back scheme calls on the Government to take the following actions:
