MTD InfraPerdana looking at group rationalisation

KUALA LUMPUR Sept 14 - MTD InfraPerdana Bhd, the concessionaire of the Kuala Lumpur-Karak Highway, is looking at a group rationalisation, said executive vice-chairman, Datuk Dr Nik Hussain Abdul Rahman, Tuesday.

No decision has been made yet as all avenues of opportunities are still being explored, he said.

The avenues to streamline or consolidate are being looked at, "but we have nothing specific yet," he told reporters after the company's annual general meeting (AGM) here.

"Hopefully, we would be able to conclude on whether we want to do it or not, by year end," he said.

As the concessionaire of the KL-Karak Highway, MTD InfraPerdana through its wholly-owned subsidiary MTD Prime Sdn Bhd (MTDP) was granted the rights to manage, collect and retain tolls on the East Coast Highway Phase 1 for 28 years, from year 2005 until 2032.

The 165-kilometre East Coast Highway is an extension of the KL-Karak Highway.

Asked if the new road had reduced traffic congestion on the KL-Karak Highway, group managing director, Datuk Azmil Khalid, who was also present at the press conference, said it would be a while before they could really estimate the traffic flow rate.

"It is a bit difficult to say as there are many factors affecting the traffic," he said.

Toll collection on the new East Coast Highway started Sept 1, 2004 at 12 sen per kilometre.

On the company's current financial year ending March 2005, Nik Hussain said that it would be a challenging year for the company.

"We have to look at how to tackle the challenges," he said.

For the financial year ended March 31, 2004, the group recorded a pre-tax profit of RM34.693 million.

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