Govt to pay RM1.08b if toll rates not increased

The rates have not been increased since 2008 and the concessionaires have proposed a hike, says works minister.

GERIK: The government is expected to pay RM1.08 billion in compensation to 23 concessionaires of 30 highways if there is no increase in toll rates, said Works Minister Fadillah Yusof.

He said the government was already paying a compensation of RM580 million at present without raising toll rates.

“If the toll rates are increased, this money (compensation) can be used for building roads, schools and hospitals.

“Can the government afford to pay compensation? That must be taken into consideration. If we allow a toll hike, we also need to take into account the interests of the people who do not want it to be implemented,” he said.

He said this after launching the East-West Road Monument in Gerik-Jeli, Kelantan here today.
Fadillah said the toll rates had not been increased since 2008 and the concessionaires had proposed that the hike in toll payment be reviewed.

He said these concessionaires were eligible to request for an increase in toll rates which needed to be reviewed every three years, five years or seven years.

However, he said many factors must be taken into consideration before any increase in toll rates were approved to ensure they did not burden the people.

The move would also involve the interest of many parties, including investors and loan providers as it would also have an impact on investors’ confidence.

– BERNAMA