No final decision on toll rate hikes yet, says highway body

KUALA LUMPUR (June 15): There has been no final decision made on toll hike for eight highways as negotiations are still ongoing, said the Association of Highway Concessionaires Malaysia.

In a brief statement yesterday, the association’s deputy chairman Sazally Saidi admitted that a few highways are entitled to increase their toll rates this year, based on their respective concession agreements.

“However, negotiations between the concession companies and the government are still ongoing,” he said, in response to a news report that the toll rates of eight highways would be increased soon.

The eight highways that are entitled to raise their toll rates from Jan 1 this year are: the North-South Expressway, Linkedua, Kesas, Elite, Lebuhraya Damansara-Puchong, Butterworth-Kulim Expressway, Seremban-Port Dickson Highway and the New North Klang Straits Bypass Expressway.

Works Minister Datuk Seri Fadillah Yusof had said during the March Parliament sitting that an announcement would be made when a decision is reached on the new toll rates for the highways.

He said the decision would have to take into consideration the interest of various stakeholders, namely the government, the concession companies, the users and the people.

Meanwhile, it has been reported that the government would have to fork out as much as RM1 billion as compensation for the concessionaires if the toll rates were not raised later this year. In other words, the government’s long-term debt is set to increase if it wants to maintain the toll rates.

It is worth noting that the government had approved RM1.51 billlion worth of government soft loans to highway concessionaires between 2000 and 2014.

Tolls at highways operated by 11 concessionaires were raised in October last year by between 20 sen and RM3.

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This article first appeared in The Edge Financial Daily, on June 15, 2016. Subscribe to The Edge Financial Daily here.