SHAH ALAM, 11 Apr: The Selangor Government has no plans to acquire two highway concession companies in the state.
This is because the cost to acquire a highway concession is higher than water concessions as the price of making roads is not fixed.
The Chief Minister, Tan Sri Abdul Khalid Ibrahim, said that Pakatan Rakyat (PR) will stand by its stance to review the highway concession agreements and abolish it is the concession has received its just profit.
“Just to take over water was terrible, to take over highways is a bigger problem,” he said at the Selangor State Assembly.
Answering a question posed by the Batang Kali Assemblyman, Mat Nadzari Ahmad Dahlan, Abdul Khalid said that Selangor has shareholdings in two highway concessions through Kumpulan Darul Ehsan Berhad (KDEB) and the Selangor State Development Corporation (PKNS).
Kumpulan Darul Ehsan Berhad, through its subsidiary company, Kumpulan Perangsang Berhad, holds a 20 percent equity stake in the KL-West Holdings Berhad (Sprint) concession, with a total investment of RM131.7 million.
He said that for the period of 2008-2013, Sprint recorded a loss for not being able to declare dividends to stockholders.
Meanwhile, PKNS owns a 30 percent stake in the Kesas Holdings Highway (Kesas), with a investment value of RM141.2 million.
The Port Klang Assemblyman added that PKNS recorded dividend gains of RM25 million, which have already been paid.
