Funding for the RM1.14 billion construction of the fourth lane from Shah Alam to Rawang will not be an issue for PLUS Expressways Bhd as the largest told-road operator in Malaysia has large cash reserves, analysts said.
They said the government may also provide funds for the project.
"We believe funding for the new fourth lane will not be a major issue for PLUS as it has RM3.2 billion cash reserves and the cashflow its highways will generate," said MIDF Equity Beat in its research note today.
In the first quarter of 2010, PLUS generated RM406.4 million in cash.
PLUS has secured government approval for RM1.14 billion highway widening works.
It will undertake the construction of a fourth lane along certain stretches of the North-South Expressway and the New Klang Valley Expressway, namely from Shah Alam to Rawang, Shah Alam to Jalan Duta and a section from Nilai (North) to Seremban.
-- Bernama
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