While Malaysian motorists are still taken aback by the toll price hike in October last year, the government expects to soon decide whether to allow the rate for eight tolled highways to be increased.
Works Minister Datuk Seri Fadillah Yusof was quoted saying that maintaining the toll charges at the current rate means the government has to pay compensation to the concessionaires amounting to RM593 million to date. The huge compensation payouts will burden the government with long-term debts.
Fadillah said the government is caught between a ‘rock and a hard place’ when it comes to dealing with highway toll issue because there are only two options under the toll restructuring plan. Either allowing the rate to be increased or pay compensation, i.e. the people pay more for using the road or the government foots a hefty bill.
The minister disclosed that under agreements signed with highway concessionaires, they were allowed to increase the rate for eight highways on Jan 1 this year.
The eight highways that will be affected by this price toll hike includes, North-South Expressway, Linkedua, Kesas, Elite, LDP, Butterworth-Kulim Expressway (BKE), Seremban-Port Dickson Highway (SPDH), and New North Klang Straits Bypass Expressway (NNKSB).
“If the government delays in approving the toll hike, the amount (of compensation) will keep increasing every year. In other words, it will become a long-term debt for the government.”
Fadillah said from 2008 to 2014, the government rejected requests by highway concessionaires to increase toll rates and as a result it had to pay more than RM2.2 billion in compensation to the concessionaires.
Following the government’s current negotiation with highway concessionaires, the decisions will be concluded soon, while there’s currently no hint whether the toll rate will go up.
Upon conclusion of their talks, the committee tasked with negotiating with the concessionaires concerned on toll rate restructuring will submit its report to the Cabinet for a decision, said Fadillah.
Source: The Sun Daily
