KUALA LUMPUR (June 29): At a Hari Raya Open House on Monday, June 24, Prime Minister Tun Mahathir Mohamad confirmed on-going speculation that Tan Sri Abu Sahid Mohamed’s Maju Holdings Sdn Bhd had put a fresh proposal in to take over PLUS Malaysia Bhd.

The premier Mahathir also clarified that Maju was the only one to submit a proposal, and that the only one standing in the way of Maju and Abu Sahid was Finance Minister Lim Guan Eng, who was opposed to the takeover.

This is the second time Maju is expressing interest in PLUS, the first being in mid-2017.

Not all questions to Lim and his officials were answered, meaning there is no indication as to why Lim is opposed to the Maju proposal or whether he has other proposals with him.

In a nutshell, Maju’s plan entails four offers to the government, all hinging on extensions to the concession which is slated to end in 2038.

Firstly, a 25% reduction in toll rates, which would entail Maju getting a 10 year extension, secondly, Maju offering a 30% toll reduction with an extension of the concession for 15 years until 2053, thirdly, a 33% toll reduction if the concession is extended for 20 years, and fourthly, a 36% toll reduction for a 30-year extension until 2068.

However the plan requires the government maintaining its guarantee on PLUS’ debt structure throughout the concession period and the extension.

The toll reductions will be implemented over a six year period to maximize toll reduction, and some of the salient features include Maju spending RM5.3 billion over the concession period to light up the whole highway.

Maju says that the revised proposal transfers RM88 billion of value to the government, and its net present value exceeds the PLUS expropriation case by RM71 billion.

But will Maju and Abu Sahid get PLUS this time?

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