PLUS – who guarantees the debt? In reality, all the toll highways are owned by the bond holders. Whenever there is a change in major shareholders of the highway, the owners need to get the consent of bond holders.
The experience of Silk Highway is ample evidence that the holders of debt have a big say in the ownership of highways.
In respect to the North South Expressway (NSE), the government-controlled Employees Provident Fund (EPF) holds a large chunk of the RM30bil Islamic debt papers. The government guarantees RM11bil of the debt papers.
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