Gov’t negotiating with operators to keep away from toll hikes on 19 highways, extension of concession interval possible

Spread the love

Gov’t negotiating with operators to avoid toll hikes on 19 highways, extension of concession period likely

The federal government has began negotiating with toll concessionaires with the goal of sustaining or lowering toll fees on 19 highways, in keeping with deputy works minister Abdul Rahman Mohamad, reported by The Edge. The concessionaires embrace Amanat Lebuhraya Rakyat (ALR), Projek Lintasan Kota Holdings (Prolintas), IJM, ANIH and PLUS. He didn’t specify which freeway offers are presently being negotiated.

In 2022, ALR took over 4 highways from Gamuda and now controls the LDP, Dash, Kesas and Good Tunnel. Prolintas holds six concessions together with the AKLEH, Guthrie Hall Expressway, LKSA, Kajang SILK, SUKE and DASH highways. IJM holds 4 concessions, specifically the Besraya, NPE, LEKAS and the West Coast Expressway underneath WCE Holdings.

PLUS holds concessions for the North-South Expressway, NKVE, Seremban-Port Dickson Freeway, North-South Expressway Central Hyperlink and the Butterworth-Kulim Expressway. The Malaysia-Singapore Second Hyperlink and Penang Bridge are additionally within the group’s portfolio.

Gov’t negotiating with operators to avoid toll hikes on 19 highways, extension of concession period likely

The primary freeway from KL to the east is break up into two – ANIH handles the KL-Karak Freeway and LPT1, whereas Section 2 of the LPT (LPT2) is operated by LPT2 Sdn Bhd.

Abdul Rahman mentioned that any proposal to restructure concession agreements hinges on discussions with concessionaires and the federal government, topic to approval from the finance ministry.

Choices relating to toll charges have to be made holistically and conclusively, contemplating their vital monetary implications and the necessity to keep investor confidence, adjust to concession settlement phrases, and make sure the concessionaire’s duty for freeway belongings’ administration and prices, in the end assuaging the federal government’s future monetary burden, he added.

Gov’t negotiating with operators to avoid toll hikes on 19 highways, extension of concession period likely

“Nonetheless, such proposals require complete research, and it has been estimated that abolishing tolls nationwide would price round RM400 billion,” the Lipis MP mentioned. The RM400 billion determine has been point out earlier than, and dates again to a few administrations.

The enterprise publication mentioned that Abdul Rahman’s assertion confirms its report in Could that mentioned the federal government is taking a look at extending the concession interval for all highways in Peninsular Malaysia to keep away from toll hikes. The extension may very well be so long as 30 years, topic to cupboard approval, its sources mentioned.

Negotiations are wanted as a result of the concessionaires have authorized rights to extend toll fares, in keeping with the their respective offers. To ensure that toll fares to not enhance, the federal government has to compensate the concessionaires utilizing taxpayers’ cash. For example, final 12 months, the authorities coughed out RM861.22 million to take care of toll charges. A card the federal government can play is to grant extensions to the concession interval – they’ll accumulate much less, however accumulate for longer.

Seeking to promote your automobile? Promote it with myTukar.

Leave a Reply

Your email address will not be published. Required fields are marked *