Gamuda plans RM5.2 bil highway trust company

GAMUDA Bhd has proposed to the government for the four highway concessions under its stable to be placed into a trust company, in an exercise it describes as a capital market solution to toll compensation woes.

In return for putting the highways into a trust, sources say the company has proposed that there would not be any more toll rate hikes, the government need not fork out any money, and the risks will be entirely with the investors of the trust company.

In the proposal that has been sent to the Works Ministry, Gamuda proposed that the highways be placed in a special purpose vehicle called Amanah Lebuhraya Sdn Bhd. The highway trust company will be overseen by a board of directors.

Amanah Lebuhraya would then go on to raise money from bond investors to buy up the four highways from Gamuda. In return, Gamuda — the main proponent of the highway trust — envisages that bond investors would get a return of about 5%.

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