KUALA LUMPUR: The toll restructuring exercise which will see no increase in toll rates on four highways in the Klang Valley until the end of the concession period is not a policy of Pakatan Harapan (PH), Senior Works Minister Datuk Seri Fadillah Yusof said.
The minister stressed that the initiative had begun in 2002 when the then Barisan Nasional (BN) government asked the Works Ministry and the relevant agencies to discuss with highway concessionaires about restructuring the toll rates on major highways in the country.
He said the ministry had commenced the toll rate-related initiative in 2002, while PH only managed to form the government in 2018, which is 16 years later.
"Discussions were held with the concession companies based on the traffic projection, and when the construction of the highways was completed and opened to traffic, the actual traffic volume will be obtained and used for the restructuring talk.
"The restructuring is a continuous initiative to ensure that the people will not be burdened by the high toll rates," he said in a statement here today.
Yesterday, PH Presidential Council in a statement said the announcement made by Prime Minister Datuk Seri Ismail Sabri Yaakob on the toll restructuring involving four highway concessionaires was a continuity of the policy initiated by the coalition when they were leading the government.
The four concessionaires are Kesas Sdn Bhd which manages Shah Alam Expressway (KESAS), Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd (Stormwater Management and Road Tunnel (SMART)), Sistem Penyuraian Trafik KL Barat Sdn Bhd (Kuala Lumpur Traffic Dispersal Scheme (SPRINT) Expressway) and Lingkaran Trans Kota Sdn Bhd (Damansara-Puchong Expressway (LDP)).
Fadillah said the restructuring strategy would take into consideration several matters, namely to reduce the intercity toll rate in stages, the increase in the cost of living, the commitment of concessionaires (loan), the effects on the Government (compensation), and the highway toll rates.
He said the Cabinet meeting on Oct 3, 2018, also agreed for the Works Ministry and the Ministry of Finance to present the findings of the long-term cost-benefit analysis and studies to the government following the suggestion to sell the government highways to local private companies.
In 2019, in line with the PH government's manifesto, he said the Works Ministry had revised the highway industry by focussing on the effect of tolls on the cost of living and gave a proposal on the best solution to the issue.
"However, taking into account the burden shouldered by the government in implementing the takeover, the (current) government had modified the proposal in the manifesto," he said.
Fadillah said the takeover cost for the four companies would be RM5.48 billion, which is RM720 million lower than the acquisition offer by the Ministry of Finance to the companies involved in 2019 at RM6.2 billion.
The minister said under the toll restructuring, the government will not spend anything for the transaction, no issuance of guarantee to the Amanat Lebuhraya Rakyat Bhd (ALR) financing, and also would not need to bear any maintenance and operational costs.
"Unlike the offer by the Ministry of Finance in 2019, the government had to give a guarantee of RM6.2 billion to finance the proposed takeover of the four concessionaires.
"The guarantee would expose the government to financial risks and people's money would need to be used to bear that risk...but the government should not use the allocation meant for the people as compensation," he said.
Fadillah said all agreements made between the government and private sector were closely monitored by the investors and the government could not simply make empty promises or implement anything that would shake the confidence of the investors.
Hence, he said after taking into account all factors, the government had agreed with the latest proposal, where there will be no more shareholders and that it must be done voluntarily by the existing shareholders.
"Since there will be no more shareholders, there will be no more commercial element, such as dividend payment which will increase cost.
"The concession period from now onwards is merely to bear the financial cost and cost of operations and maintenance," he added.
-- BERNAMA
Bernama
Wed Apr 06 2022
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The toll restructuring exercise which will see no increase in toll rates on four highways in the Klang Valley until the end of the concession period is not a policy of PH, Senior Works Minister Datuk Seri Fadillah Yusof said. - BERNAMA
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