PETALING JAYA: Toll rates for 11 highways have been restructured to flat rates until the end of their respective concession period, says the Works Ministry.
In a parliamentary reply, the ministry said following negotiations on the restructuring of highways with 12 concession companies for 18 highways.
Of the 33 operating highways with tolls managed by 27 highway concessionaires, the ministry said seven highways have their period of toll rate increases extended from between seven to 10 years with frequency of increases ranging from one to five times throughout the concession period.
“As for the other remaining highways, the restructuring negotiations are still ongoing.
“The concession companies have also applied for an extension period to finalise the restructuring proposal, which requires approval from their respective board members and bondholders,” it said.
The ministry was replying to a question by Ayer Hitam MP Datuk Seri Dr Wee Ka Siong who requested a list of the main highway concessions that have yet to expire and how far has the ministry implemented the restructuring operation with the highway concessionaires of these highways.
It said the Cabinet on Dec 18, 2020 had agreed on the objective of the direction of the toll highway industry in the country to restore investor confidence and maintain concession companies in the industry involving existing highways through the restructuring of toll rates that will be jointly negotiated with the concessionaire company.
Negotiations with concessionaires have started to be implemented from January 2021 and will be concluded in stages in 2022 and 2023, it added.
The ministry said each of the highways has a concession agreement with its own terms and conditions signed between the concessionaire company and the government.
“In addition, the expiry period of each highway concession also varies according to the number of years of operation that has been agreed in the concession agreement subject to development costs, proposed toll rates and other matters projected in the related highway cash flow projections,” it said.
The restructuring initiative also greatly benefited the government in terms of saving compensation payments for toll-free expenses as well as benefiting users who can enjoy lower or flat toll rates until the end of the concession.
Source Agencies
