New highway projects to be fully funded by concessionaires - Fadillah

PETALING JAYA: All new highway projects, including three in the Klang Valley, will not get any allocations from the government, said Senior Works Minister Datuk Seri Fadillah Yusof.

He said the costs of these projects and any risks involved would have to be fully borne by the concessionaires.

"There will no longer be any financial assistance from the government for all new highways. In fact, no assistance for land too. Previously, land acquisition cost for highway construction was partly borne by the government.

"Now, there are no more soft loans; all will have to be shouldered by the concession companies interested in building the highways," he said in his speech when launching the Aidilfitri open house and annual general meeting of the Malaysian Bumiputera Contractors Association for 2021 and 2022 here yesterday.

Media reports have said the Petaling Jaya Traffic Dispersal Elevated Highway (PJD LINK), Putrajaya - Bangi Expressway (PBE) and Kuala Lumpur Northern Dispersal Expressway (KL-NODE) projects have obtained approval in principle from the government.

On April 4, Fadillah said the government welcomed private companies to take over concessionaires for the purpose of restructuring to reduce the financial burden of the people and government.

Earlier on the same day, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government had agreed with the restructuring of four Klang Valley highway concessionaires, namely Kesas Sdn Bhd (Kesas Expressway), Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd (SMART Tunnel), Sistem Penyuraian Trafik KL Barat Sdn Bhd (SPRINT Expressway) and Lingkaran Trans Kota Sdn Bhd (Damansara-Puchong Expressway or LDP).

-- BERNAMA