Lower Toll Rates Possible If costs, Corruption Are Managed - PM Anwar
Prime Minister Datuk Seri Anwar Ibrahim stated that lowering toll prices nationwide is both possible and conceivable provided that the expenses related to building new highways are properly managed and leave no opportunity for corruption or leakage, NST has reported.
“I believe that the costs frequently raised concerning tolls in our country are valid concerns. When costs increase, toll rates also increase. However, if the development costs are well-managed and there is no leakage or corruption, there is a possibility of reducing toll rates,” the prime minister said.
The Prime Minister said that earlier payments made to speed up development project approvals had increased building costs. He continued, "therefore, it is crucial to thoroughly examine the costs of highway development in order to prevent any leakage."
“From my experience with UEM Group Bhd in the early stages, I used to say that costs often increased when they could have been reduced. This was due to excessive fees paid to expedite approvals.
“I believe this practice must be stopped to ensure that future projects can receive expedited approvals without unnecessary costs,” he said after officiating the Seremban southbound rest and service (R&R) area on the North-South Expressway yesterday. In related news, Works Minister Datuk Seri Alexander Nanta Linggi stated that the government will bargain with highway concession companies to lower toll prices if they have achieved returns on their investments (ROI).
Nanta clarified that the goal of this action is to reduce toll rates, as stated by Prime Minister, according to Malaysia Gazette.
“This is the government’s hope because tolls are collected as long as there is an agreement, and toll concession companies receive loans from banks to develop highways. These loans are repaid through tolls.
“Therefore, once these highway companies achieve ROI, it may be possible to negotiate with them to reduce tolls.
According to Nanta, the proposal to lower toll rates will be taken into consideration once the concession period expires, adding that in order to prevent the government from bearing the entire cost of highway maintenance, the rates may stay the same for the time being.
“We will assist highway users after the concession companies achieve their ROI. At that point, there might be room to lower toll rates,” he said.
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