Malaysia

Highway concessions: BN’s idea to restructure, not PH, says minister

Initiative has been in place since 2002, according to Datuk Seri Fadillah Yusof

Updated 4 years ago · Published on 06 Apr 2022 2:48PM

Highway concessions: BN’s idea to restructure, not PH, says minister
Works Minister Datuk Seri Fadillah Yusof says the initiative had been implemented since 2002 by the Barisan Nasional government that saw his ministry and relevant agencies tasked to negotiate with concessionaires to restructure toll rates on major highways. – Bernama pic, April 6, 2022

KUALA LUMPUR – The restructuring of four highway concessions in the Klang Valley was not a policy during the Pakatan Harapan (PH) administration but an initiative by Barisan Nasional (BN) since 2002, said Works Minister Datuk Seri Fadillah Yusof.

He said the initiative had been implemented since 2002 by the BN government that saw his ministry and relevant agencies tasked to negotiate with concessionaires to restructure toll rates on major highways.

“Negotiations are carried out with the concession company based on traffic projections and when a highway is completed and used. And actual traffic data will be collected and used during restructuring negotiations.

“Restructuring is an ongoing initiative to ensure that the people are not burdened with high toll rates,” he said in a statement today.

Yesterday, he said the government will not spend a single sen for the restructuring of concessions for four major highways in the Klang Valley, either through direct funding or government guarantee.

He added that this is the commitment given by the government in ensuring no public funds are used for the takeover of the highways by private company Amanat Lebuhraya Rakyat Bhd (ALR).

Speaking to The Vibes, Fadillah said the entire funding for the restructuring will be fully borne by ALR by way of Islamic bonds or sukuk.

He was responding to some of the concerns raised by the public over the proposed concessions takeover for Shah Alam Expressway (Kesas), Western Kuala Lumpur Traffic Dispersal System (Sprint Highway), Damansara-Puchong Expressway (LDP), and Stormwater Management and Road Tunnel (Smart).

ALR has offered a total of RM5.48 billion to take over the concessions of the four highways, with RM2.119 billion offered to LDP, RM1.24 billion for Kesas, RM1.808 billion for Sprint Highway, and RM313 million for Smart.

On its website, ALR said all surplus or profits generated throughout its ownership of the highways will be channelled back to finance its earlier debts, which will then enable the concessions to be shortened.

It affirmed that after the takeover, toll rates for the affected highways will be maintained at the current rate until the end of the concession extension.

Meanwhile, Pakatan Harapan is urging the government to fully detail ALR in Parliament, and provide clarity pertaining to the company’s financial obligations and expenditure transparency. – The Vibes, April 6, 2022

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