Saturday, June 29, 2019

Is the Malaysian Government hiding liabilities -Is the toll road SPV one of many?

by Ganesh Sahathevan

This statement by the Minister For Finance Lim Guan Eng is nonsense: 

“The collection of congestion charge (for use of the toll roads) will be sufficient to service the debt, as well as to finance the operation and maintenance costs of the highways without requiring additional budget allocation by MOF.
“In other words, the acquisition cost will be self-financing through the collection of congestion charge and will not require any government expenditure,” Lim said.

The acquisition will be  financed by debt,and via a SPV wholly-owned by the MOF Inc (see story below). Its debts are debts of the Malaysian Government.It is hard to tell if it is the only SPV that is being used by the Malaysian Government to keep liabilities and outflows off the books.


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