Funding boost for highways

A quarter of the RM20 billion Facilitation Fund will be used to help build up to seven new highways during the 10th Malaysia Plan.

The fund, announced under the 10MP in June, was meant to attract at least RM200 billion worth of private sector investments over 2011-2015.

"RM5 billion we're putting aside for land acquisition. Acquiring land is also part of the facilitation," said Datuk Dr Ali Hamsa, director general of the Public-Private Partnership Unit (3PU).

Some of these highways are extensions to existing highways like the North-South Expressway (NSE) while some will be completely new ones. One will connect Paroi to Senawang in Negri Sembilan and onwards to KL International Airport, which will be more than 50km.

Another major new highway is called the central spine, a new highway spanning the length of Peninsular Malaysia. But unlike the NSE or the East Coast Highway, it will run in the centre of the Peninsula from Kota Baru in Kelantan, down to Simpang Pelangai in Negri Sembilan.

But Ali stressed that the central spine highway is still in the "thinking" stage. This means that the project would only happen if it is worthwhile doing.

"This is just some thinking, early thinking. All highways will depend on viability," he told Business Times in an interview last week.

The seven new highways are estimated to be worth some RM20 billion.

The new highways will also be done on a privatised basis, which means that companies will build the roads and operate it over a period of time.

3PU is a new unit set up under the Prime Minister's Department and it would handle privatisation projects, Private Finance Initiative projects, as well as monitor the five economic corridors.

It would also manage the RM20 billion Facilitation Fund.

The fund will be given as grants to companies with projects in strategic sectors like infrastructure, education, tourism and health.

Companies that are interested will be able to find out more about how to apply and what sort of projects qualify once the Cabinet approves the guidelines.

"Now the guidelines are ready but we have to take it to Cabinet for approval in September," he said.

By Shahriman Johari
Business Times