Tak percaya check sendiri

Assuming Capital structure of RM33 billion, for simplicity purposes, FCFF = operating cash flows - capex but BEFORE bond payments and dividends.

Before: 2019: RM2.5 bil FCFF, 2038 RM5.6 bil FCFF
After: 2019: RM1.9 bil FCFF (18% reduction), 2058: RM4.5 bil FCFF (18% reduction)

both have IRR of 9.4%. ie: the toll IRR hasnt changed before and after the reduction.

possible upside due to increased volume, however, government actually still owes PLUS when FHR2 and Bukit Kayu Hitam toll terminated, in the RM200 millions. so its possible that it will be used to pay for this too.

The thing is after so many years the highway is already paid off! Why still need to collect tolls

If CAPEX is the same, IRR must drop if FCFF drops.

The first owner made a killing selling it off.

The later owners have not made their buck yet.

If no tolls, then don't complain when your EPF dividend is 2.5%. Not only EPF but a lot of unit trusts and insurance funds are also invested in toll companies. Why? They are assured of good profits and gives out good dividends. A lot of people also do not know that toll companies are one of the favorite counters for foreigners on our Bursa.

IRR is dependent on cash flow timing. it is all-in (includes capex, opex, excludes borrowing cost, dividends)
you can do it yourself on excel. just straight line it. the number wont run much.

The toll has operating expenses of RM1.3-2.9 bil a year (2019-2036 3%-5% inflation), and capex of RM0.3-0.4 bil a year to maintain the roads.

its not cheap. Toll is a must, or else taxpayers will pay, and EPF will pay.

- Datuk Seri Dr Wee Ka Siong

Yes. Look at the parameters involved.
If revenue is reduced by 18%, and capex and opex is maintained(no reason to be reduced), then IRR will surely reduce?

who wants to make money, terms can always renegotiate when you are losing money, ask for compensation

just siphon it off via maintenance

Thats because they dont allow PLUS to hike the toll

18% toll reduction is worth about 20 years of concession

When the first concession came, the toll rates was such that the toll will hike an average 2%-3% per annum for inflation and to give a modest IRR of 10%.

Since the government does NOT allow for the toll hike, the concession must be extended

18% toll reduction is worth +20 years of concession.
if you dont allow the toll to do the 3% rate hike, than every hike, the concession will be extended by 3-4 years!

IE: if you dont allow PLUS to do their toll rate hike for the sake of votes, than the concession will go practically forever. this is simple maths.

The government should have just let PLUS do their hikes to account for inflation and 10% IRR. Highway is risky, 10% IRR is NOT that high!

20 years extension bro.
more years of cash flow = higher IRR but its offset by the 18% reduction in toll



This post has been edited by Nachiino Etamay: Jan 17 2020, 09:40 AM

“I pay RM18 to resurface one square metre of my highway (Maju Expressway), everyone pays about that, (but) they (PLUS) pay about three times more,” he tells The Edge.

PLUS pays RM58 for resurfacing one square metre, according to Abu Sahid.
“Why do they pay that [high] price?
https://www.theedgemarkets.com/article/plus...says-abu-sahid#

Not because they are stupid but because they have layers and layers and layers, from PLUS, they give it to Propel (Projek Penyelenggaraan Lebuhraya Bhd), then to UEM Edgenta (Bhd), so many other companies (all within the UEM and Khazanah stable). By the time it goes to the guy who really does the job, there is just skin,” Abu Sahid says

En Abu da report MACC ke?

IRR is more sensitive to early years numbers I think.
As you stretch out too far, the effect is very much less.

Unless we are looking at EPF/Khaz IRR and not project IRR. That may be more impactful, yeah

Butthurt first, komplen later

Tak jual PLUS bodoh
16 Jan 2020
https://forum.lowyat.net/topic/4892946
https://forum.lowyat.net/topic/4892968

I was referring to the owners, EPF and Khazanah.
The rest is of couse Malaysian songlap.

No need to maintain? The money fall from the sky?

I think the issue is who is the individual who want to sell Plus to private company....?
this issue never happens during BN then suddenly during PH takeover got this issue...something very fishy here...
Anyway Plus is a "money-making machine", dont know why want to sell such valuable asset in the first place

Jual Complain.
Tak Jual pun Complain.

Apa lagi rakyat malaysia mau?????

Actually do you know what the purpose of road tax?

No toll but raise as much as road tax enough. Rich people own car will fund the road maintenance fee.