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

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 intention of sustaining or lowering toll costs on 19 highways, in response to deputy works minister Abdul Rahman Mohamad, reported by The Edge. The concessionaires embody Amanat Lebuhraya Rakyat (ALR), Projek Lintasan Kota Holdings (Prolintas), IJM, ANIH and PLUS. He didn’t specify which freeway offers are at present being negotiated.

In 2022, ALR took over 4 highways from Gamuda and now controls the LDP, Dash, Kesas and Sensible 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 below 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.

Selections relating to toll charges should be made holistically and conclusively, contemplating their vital monetary implications and the necessity to preserve investor confidence, adjust to concession settlement phrases, and make sure the concessionaire’s duty for freeway belongings’ administration and prices, finally 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 Might 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 could possibly 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 response to the their respective offers. To ensure that toll fares to not improve, the federal government has to compensate the concessionaires utilizing taxpayers’ cash. For example, final yr, the authorities coughed out RM861.22 million to keep up toll charges. A card the federal government can play is to grant extensions to the concession interval – they will acquire much less, however acquire for longer.

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