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Wednesday, November 16, 2011

UEM, EPF waive RM6.5b PLUS compensation


November 16, 2011

The government had frozen contractual toll rate hikes for the NSE until 2015. — File pic
KUALA LUMPUR, Nov 16 — UEM Group Berhad and the Employees Provident Fund (EPF), the new owners of the assets of PLUS Expressways, have waived their right to some RM6.5 billion in compensation in exchange for extensions to the concession periods for the Penang bridge and two other highways.

UEM and EPF also said that toll increases for the North-South Expressway (NSE), the crown jewel of PLUS, will be lowered from 10 per cent every three years to five per cent at the same intervals, while the Penang Bridge will see no increase.

The government owed PLUS billions in compensation due to the decision to freeze unpopular toll hikes that were stipulated in the original concession agreement, until 2015.

The concession agreement for the NSE will end on December 31, 2038 and under the new terms and conditions agreed upon between UEM, EPF and the government, the concession periods for the Penang Bridge, NSE Central Link (Elite) and Butterworth Kulim Expressway (BKE) will be extended to December 31, 2038 from 2021, 2030 and 2026 respectively.

MORE TO COME

1 comment:

  1. really do not know the financial aspects of the new arrangement, fair to the Penangites using the Penang Bridge? 2011 till 2021 is less than 10 years with no increase in toll rate but need to compensate for 17 years at current rate. Are the concessionaires benefiting too much? The government must be transparent and explain whether this is a fair deal for Penang OR Penang has to pay more for others to pay less?

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