Both Ganesh Sahathevan and Alan Yeoh were sacked after writing several articles concerning Litrak, See Hoy Chan and EPF. .............. And today: Gamuda still down as MRT2 spat blows up END Background
KUALA LUMPUR -- Lingaran Trans Kota Sdn Bhd (Litrak), the company to which the Damansara Puchong-Putra Jaya highway, has been privatised for 33 years, has been given two special financial facilities by the government to finance the construction of that highway.
The first is a RM535 million fixed rate loan from the Employees Provident Fund (EPF), for a term of 13 years which Litrak director Lin Yun Ling described as "uncommon" at a press conference yesterday because the EPF normally lends for only 5-8 years.
The second facilities is a RM98 million loan at concessional rates. The rates have yet to be determined by the Finance Ministry.
Litrak is partly owned by Gamuda Bhd, a KLSE main board company in which Lin is managing director as well as a substantial shareholder. Gamuda's statke in Litrak is 49 per cent while the rest is held by Irama Duta Sdn Bhd. Irama Duta's largest shareholder is Yusoff Daud.
Lin said the government requires Litrak shareholders to invest RM300 million in the concession company over the next three years, until completion, scheduled for 1999. Litrak was formally awarded the concession yesterday at a ceremony officiated by Works Minister Datuk Seri S. Samy Vellu. He also said the highway will cost about RM26 million per kilometre to construct, compared to RM4 million to RM11 million for the North-South Highway.
Litrak will raise about RM1.37 billion to finance construction of the 40 km 6-lane highway. Apart from the money provided by the government, a RM535 million floating rate facility and a RM300 million bridging loan are being arranged by a syndication led by Malaysian Banking Berhad (Maybank) and Public Bank Bhd. Maybank and Public Bank are also acting as guarantors for the loan from the EPF. The company would qualify for the listing of infrastructural companies.
However, Lin said listing is not being considered as a means of finance. Once the highway is completed, toll will be collected from 4 points. Lin said the toll rate has been determined and is subject to government approval. The concession agreement also provided for the toll rate to be increased only twice, in 2007 and in 2016.
PLUS PROPOSES A REVISION OF TOLL RATES
KUALA LUMPUR -- Projek Lebuhraya Utara Selatan Sdn Bhd (PLUS) may proposed a new formula to determine toll rates. The formula will be subject to the volume of traffic on its highway, said Works Minister Datuk Seri S. Samy Vellu.
He acknolwedged that under the present toll rate structure, PLUS will not be able to repay its loans which he estimated at RM6 billion. He said this after signing an agreement yesterday awarding concession for the privatisationof the Damansara-Puchong-Putra Jaya highway.
He was asked to comment on how the new formula for setting toll rates might apply to PLUS. He said the new formula is based on revenue collected rather than the traffic volume, and has been devised by the Economic Planning Unit.
The need for a revised toll structure was raised by PLUS chairman, Tan Sri Raden Soernarno, who had said PLUS would not be able to meet a payment in July of RM670 million in principal and interest, for current toll collection is only RM450 million.