WORKS MINISTRY HAS 6 MONTHS TO FINALISE TOLL RATES, CONCESSION AGREEMENTS
Findings will be presented to cabinet, says minister
THE Works Ministry has been given a six-month period to conclude negotiations on tolls with stakeholders of highway concessions companies in the country.
Works Minister Baru Bian said negotiation was ongoing and its outcome would be presented to the cabinet.
“They (concession companies) understand the direction of Pakatan Harapan and our openness, following which, we will return to the cabinet after six months.”
“We will try to find out if there is room for review of the agreement (signed previously with the highway concessionaires),” he said in reply to additional questions from Akmal Nasrullah Mohd Nasir (PKR-Johor Baru) at the Dewan Rakyat here yesterday.
Akmal had asked for details on the government’s pledge to reduce the burden on the people, especially through abolishing highway toll collection nationwide, as contained in the PH manifesto.
He had asked if the highway concessionaires were receptive to the government’s efforts in abolishing tolls as recent statistics showed that collection rates had exceeded construction and operating costs.
Responding to Akmal’s original question regarding the details of construction, operation and maintenance statistics, Bian said the cost for 29 highways, which was still under operation until the expiry of the concession period, amounted to RM35.14 billion.
“The annual average cost of operating expenses for 29 highways is RM1.7 billion, while routine and periodic maintenance or upgrades are RM402 million and RM459 million, respectively.
“Hence, the total cost for operating and maintenance costs is estimated at RM2.5 billion, while compensation paid from 1990 to last year is RM5.109 billion.
“Total toll revenue from startup to last year is RM74.654 billion.”
Without giving specific details, Bian said the concession period for two highways was scheduled to expire in 10 years, while 16 were expected to end between 11 and 20 years.
He said the concession period for 11 highways was scheduled for more than 20 years.