Thursday, November 17, 2011

UEM, EPF to waive Plus Expressway's RM2.6 bil compensation

UEM Group Bhd and the Employees Provident Fund (EPF) have agreed to waive Plus Expressways Bhd's current outstanding compensation balance totalling RM2.9 billion from the government.

In a statement today, UEM said there will also be no compensation for the toll rate freeze until 2015 which will otherwise cost the government RM3.6 billion.

EPF and UEM Group have concluded the negotiation with the government on the proposed acquisition of assets and liabilities of PLUS Expressways and Penang Bridge Sdn Bhd.

They expect to complete the proposed acquisition and payment to shareholders of PLUS Expressways by December this year.

Under the negotiation term, there will be no toll increase for the North-South Expressway (NSE), North-South Expressway Central Link (NSECL), Malaysia-Singapore Second Crossing (Linkedua) and Butterworth-Kulim Expressway (BKE).

Starting 2016, the toll rate on the four expressways will increase at five percent every three years while that for Penang Bridge will remain as per current charges until end of concession period.

There will be no extension for concession period for NSE and Linkedua which will end in December 2038.

Meanwhile, the concession period for NSECL, BKE and Penang Bridge will be extended to December 2038.

The current expiry for NSECL is May 31, 2030; BKE (June 27, 2026); and, Penang Bridge (Dec 31, 2021). – Bernama

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