Hike for PLUS highways, govt has yet to make decision - Fadillah Yusof

There will not be an automatic toll hike for PLUS Highways as the government has yet to make a decision on this, Works Minister Datuk Seri Fadillah Yusof said in a statement here, Tuesday.

He said a committee comprising key stakeholders such as the Works Ministry, Finance Ministry (MOF), Public Private Partnership Unit of Prime Minister's Office, Economic Planning Unit, Attorney-General's Chambers, Malaysian Highways Authority and PLUS Highways Bhd will be set up before end of this year to renegotiate the new toll rates.

He said this in response to recent speculation in the media that there would be a toll increase next year for highways owned by PLUS.

Fadillah said the government in 2013 had promised that there will be a gradual reduction in the rates of intercity expressways by the year 2018, and reiterated that the government intended to honour this promise.

He also confirmed that PLUS Highways Bhd, which is now owned 51 per cent by UEM Bhd, a 100 percent Khazanah Malaysia company under MOF and 49 per cent by the Employees Provident Fund (EPF) had renegotiated the concession agreement which provides for a five percent toll increase every three years.

"The PLUS highways concession agreements were renegotiated based on a legacy concession agreement that previously allowed a 10 per cent hike in toll prices every three years decided under a previous prime minister.

"When PLUS Highways Bhd was completely acquired by UEM Berhad and the EPF in 2011, this agreement was renegotiated and reduced to a five per cent increase every three years,' he said.

Fadillah said the last toll increase for PLUS Highways was in the year 2005 and since then the toll rates have not been allowed to increase although it was provided for in the agreement for toll increases in the year 2008 and 2011.

"The government has been successful in renegotiating and have compensated PLUS Highways Bhd to maintain the toll rates since 10 years ago," he said.