Toll Rates For 11 Highways Restructured To Flat Rates - Works Ministry

According to the Works Ministry, toll rates on 11 highways have been restructured to flat rates through the end of each concession period, following discussions with 12 concession companies for the restructuring of 18 highways, 

The ministry stated that seven of the 33 operational highways with tolls managed by 27 highway concessionaires have had their toll rate increases extended for a period of seven to ten years, with increases occurring one to five times during the concession period.

The talks for the restructuring of the other highways are still in progress.

"The concession companies have also applied for an extension period to finalise the restructuring proposal, which requires approval from their respective board members and bondholders,” it said.

In response to a query from Ayer Hitam MP Datuk Seri Dr. Wee Ka Siong, the ministry provided a list of the primary highway concessions that are still in effect as well as an update on the ministry's implementation of the restructuring process in collaboration with the highway concessionaires.

It stated that on December 18, 2020, the Cabinet decided on the goal of the nation's toll highway industry's direction, which is to rebuild investor confidence and keep concessionaires in the business of constructing existing highways by restructuring toll rates through negotiations that will be conducted in tandem with the concessionaire company.

It further stated that the implementation of concessionaire negotiations began in January 2021 and would be completed in phases in 2022 and 2023.
Each of the highways has a concession agreement with its own terms and conditions signed between the concessionaire company and the government, the ministry added.


“In addition, the expiry period of each highway concession also varies according to the number of years of operation that has been agreed in the concession agreement subject to development costs, proposed toll rates and other matters projected in the related highway cash flow projections,” it said.
In addition to providing users with lower or flat toll rates through the end of the concession, the restructuring initiative also significantly reduced compensation payments for toll-free expenses for the government.