Government Negotiating With concessionaires To Curb Toll Hikes On 19 highways

To maintain or lower tolls on 19 highways, the government has stepped in and engaged in negotiations with toll concessionaires, according to deputy minister of works Abdul Rahman Mohamad.

The Edge reported that the concessionaires include Amanat Lebuhraya Rakyat (ALR), Projek Lintasan Kota Holdings (Prolintas), IJM, ANIH and PLUS.

ALR took over four highways from Gamuda in 2022, according to Paul Tan. It acquired control of the LDP, Sprint, Kesas, and Smart Tunnel. Prolintas operates six highway concessions, including the AKLEH, Guthrie Corridor Motorway, LKSA, Kajang SILK, SUKE, and DASH. Under WCE Holdings, IJM has four concessions: Besraya, NPE, LEKAS, and the West Coast Expressway.

PLUS is the concessionaire for the North-South Expressway, also known as the NKVE, the Seremban-Port Dickson Highway, the North-South Expressway Central Link, and the Butterworth-Kulim Expressway. The group also owns the Malaysia-Singapore Second Link and the Penang Bridge. The main highway from KL to the east is divided into two sections: the KL-Karak Highway and LPT1, while LPT2 Sdn Bhd operates Phase 2 of the LPT (LPT2).

During an oral question and answer session at Dewan Rakyat on Thursday, the Minister also stated that negotiations for other highways, including the East Coast Highway Phase 2 (LPT2), will take time to finalise due to the involvement of multiple parties, including the government, concession companies, and financial institutions.

"Any proposal to restructure concession agreements hinges on discussions with concessionaires and the government, subject to approval from the Ministry of Finance"

"Decisions regarding toll rates must be made holistically and conclusively, considering their significant financial implications and the need to maintain investor confidence, comply with concession agreement terms, and ensure the concessionaire's responsibility for highway assets' management and costs, ultimately alleviating the government's future financial burden", he said.

"However, such proposals require comprehensive studies, and it has been estimated that abolishing tolls nationwide would cost around RM400 billion," Abdul Rahman added.

In May, The Edge reported that the government is considering extending the concession period for all highways in Peninsular Malaysia to avoid toll hikes for up to 30 years, subject to cabinet approval.