MEMBERS of the media were given an overview of the Stormwater Management And Road Tunnel’s (SMART) roles, functions and contribution to Kuala Lumpur this morning, by its concessionaire’s owner Amanat Lebuhraya Rakyat Berhad (ALR) — which provided them a practical perspective on one of the critical public infrastructure assets under the company’s stewardship.
As the world’s first dual-function tunnel and Malaysia’s longest tunnel, SMART serves two key purposes: diverting stormwater to help protect Kuala Lumpur from flooding and easing traffic congestion along a key urban corridor.
Since opening to traffic in May 2007, SMART has diverted 266.03 million cubic metres of floodwater on more than 685 occasions, helping to avert an estimated RM4.94 billion in public damage, not to mention the unquantifiable stress, heartache and all-round suffering by the public.
At SMART office right before the tour, ALR Group CEO Muhammad Nizam Alias briefed members of the media on ALR’s Sukuk obligations, financial model and progress in fulfilling its commitments.
ALR issued RM5.5 billion in nominal value AAA-rated Senior Sustainable and Responsible Investment Sukuk Murabahah on Oct 13, 2022, to finance the acquisition of four major urban highway concessionaires, namely SMART, Kesas Expressway (KESAS), Damansara-Puchong Expressway (LITRAK), and Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT).
The acquisition was undertaken without the use of public funds and without a government guarantee.
During the briefing, Muhammad Nizam also provided the media representatives with an overview of ALR’s roles and functions, and explained how its financial model supports the organisation’s broader mandate to the public.
“As a private, not-for-profit entity, ALR was established to hasten the shortening of the toll concessions and return the four highways to the government,” he said, adding that under the ALR model, toll rates will remain at current levels until the end of the respective concessions, while surpluses generated are channelled towards the early redemption of debt financing.
“Operating and maintaining critical infrastructure such as SMART requires substantial financial resources; nevertheless, ALR is committed to fulfilling its social responsibility and continues to exercise financial discipline by carefully balancing operational expenditure with toll revenue while meeting its Sukuk obligations.”
