A source told FMT that the government was not in favour of the proposals put forth by a number of tycoons as these were too low and Putrajaya would still need to guarantee PLUS’ liabilities.

So far, former Renong boss Halim Saad and prominent businessman Wong Gian Kui, Bumiputera construction giant Widad Business Group, Maju Holdings Sdn Bhd and Hong Kong-based equity firm RRJ Capital have submitted proposals for a takeover of PLUS, which is owned by Khazanah Nasional Bhd (51%) and the Employees Provident Fund (49%).

“More recently, one ministry submitted a plan which would use a federal government SPV to take over PLUS,” the source said.

“To my understanding, this was not approved by the Khazanah or EPF boards.”

According to the source, the proposal would see PLUS’ concession extended by 20 years from 2038 to 2058.

“The trade-off would be that highway users enjoy an 18% discount,” the source said, adding that there would be no increase in toll rates which would save the government billions in compensation.

However, the source added that this would be a “very bad idea”.

“This proposal does not make any sense. The government is already drowning in debt. The RM30 billion could be used to build schools, hospitals, roads and bridges. Why take on more debt?”

The source also said it was unclear if the 18% discount would be fixed throughout the day, or only applicable during off-peak hours as with the RM6.2 billion takeover of four inner-city tolls from Gamuda Bhd.

“Worse, instead of ending toll collection in 2038, we would be extending it for 20 years,” the source said.

The source said this would be political suicide for Pakatan Harapan (PH) which promised to review all highway concession agreements in its election manifesto for the May 9 polls.

While PH had vowed to abolish tolls in stages, the source said it was better for the ruling coalition to bite the bullet and let the toll concessions expire.

With the government’s present emphasis on public transport and the development of rail lines, the source said it made little sense to take over tolled highways and increase its debts by over RM30 billion.

“To me, the only people who will benefit from this proposed takeover, and even the takeover of the four inner-city tolls, are the concessionaires, not the people.”