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 decreasing toll costs on 19 highways, in line with deputy works minister Abdul Rahman Mohamad, reported by The Edge. The concessionaires embrace Amanat Lebuhraya Rakyat (ALR), Projek Lintasan Kota Holdings (Prolintas), IJM, ANIH and PLUS. He didn’t specify which freeway offers are presently being negotiated.

In 2022, ALR took over 4 highways from Gamuda and now controls the LDP, Dash, Kesas and Good Tunnel. Prolintas holds six concessions together with the AKLEH, Guthrie Hall Expressway, LKSA, Kajang SILK, SUKE and DASH highways. IJM holds 4 concessions, particularly the Besraya, NPE, LEKAS and the West Coast Expressway beneath 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 principle 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 stated that any proposal to restructure concession agreements hinges on discussions with concessionaires and the federal government, topic to approval from the finance ministry.

Choices relating to toll charges should be made holistically and conclusively, contemplating their vital monetary implications and the necessity to keep 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 value round RM400 billion,” the Lipis MP stated. The RM400 billion determine has been point out earlier than, and dates again to a few administrations.

The enterprise publication stated that Abdul Rahman’s assertion confirms its report in Could that stated 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 may very well be so long as 30 years, topic to cupboard approval, its sources stated.

Negotiations are wanted as a result of the concessionaires have authorized rights to extend toll fares, in line with 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 12 months, the authorities coughed out RM861.22 million to take care of toll charges. A card the federal government can play is to grant extensions to the concession interval – they will gather much less, however gather for longer.

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I was born on March 15, 1980, in Detroit, Michigan. I grew up in the heart of Motor City, surrounded by the culture of automobiles. I had a close-knit family, including my parents, two older siblings, and a younger brother. I attended Roosevelt High School in Detroit, where my love for cars began to flourish. From a young age, I showed an early interest in automobiles. I would spend hours tinkering with my bicycle and helping my father fix up our family car. It was clear that I had a natural affinity for all things mechanical. This passion for cars led me to pursue a career in the automotive industry.

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