KUALA LUMPUR: The government has initiated negotiations with highway concessionaires over toll restructuring involving 19 highways, the Dewan Rakyat was told yesterday (Nov 16).
Deputy Works Minister Datuk Seri Abdul Rahman Mohamad said the 19 highways are under the management of Amanat Lebuhraya Rakyat Berhad (ALR), Gamuda Bhd, Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), IJM Corporation Bhd, ANIH Bhd, and PLUS Malaysia Bhd.
"This restructuring is to be carried out by readjusting toll rates to lower rates or maintaining the rate until the end of the concession period.
"The move will result in savings of RM53.78 billion in the form of future government compensation commitments throughout the existing concession period," he said in response to Ahmad Fadhli Shaari (PN-Pasir Mas) yesterday.
Fadhli asked about the government's steps in reviewing all highway concession agreements and negotiations to obtain the best prices to achieve an 18 per cent toll rate reduction for the North-South Expressway, including the East Coast Highway Phase 2 (LPT 2).
As for the other highways, including LPT 2, Rahman said negotiations are still ongoing and they will take some time to conclude.
"This is considering that the restructuring requires agreement of both parties, namely the government and the concession company. It also involves financial institutions that have invested in the said highway project, either in the form of bonds or sukuk."
Rahman added that all proposals for highway restructuring will be examined through discussions at the Public Private Partnership Unit (UKAS)-level, under the Prime Minister's Department, and relevant agencies.
"Any decision to maintain or reduce toll rates must be made comprehensively and conclusively, as it will have significant financial implications to the government, in which at the same time, the government needs to maintain the confidence of existing investors, adhere to concession agreement terms, and keep concession companies in the highway industry.
"This is to ensure that the management of highway assets, such as operating costs and maintenance can be maintained under the responsibility of the concession company, thereby reducing the government's financial burden in the future."