Only four highways are entitled to hike toll rates next year based on the concession agreements, said Minister of Works, Datuk Seri Fadillah Yusof.
He said they are the Eastern Dispersal Link (EDL), Kajang-Seremban Highway (Lekas), Senai-Desaru Expressway (SDE) and the Guthrie Corridor Expressway (GCE).
"The estimated amount of toll compensation that will have to be made for the four highways in 2017 in the absence of toll hikes is RM59.77 million," he said in a written reply to a question from Lim Guan Eng (DAP-Bagan) in at the Dewan Rakyat today.
Lim had wanted to know the outcome of discussions with the highway concessionaires who will increase their rates and the amount of compensation required from the government if the tolls are not raised.
Lim also asked about the costs incurred for construction of the North-South Highway and collection of toll to date, and why it (toll) had not been scrapped yet.
Fadillah said the expressway involved was built in 1989 and was completed in 1994 at a cost of RM5.9 billion, which was fully borne by the concessionaire, except for costs incurred in land acquisition that was covered by the government.
According to the original agreement in 1988, he said the highway concession was supposed to end in 2018 but following efforts made to minimise the impact of toll hikes, the government had to restructure the rates in 1999, 2002 and 2011.
"Under the last restructuring (2011), all expressway concessions under PLUS Berhad, including the North-South Expressway, have been standardised, that is ending on Dec 31, 2038," he said.
Fadillah said until the end of 2015, the overall toll collected for the North-South highway alone was RM36.39 billion.
The total amount of compensation paid out to PLUS following the deferment in toll hikes until 2015 was RM917.1 million, he said.
Fadillah explained that although the concessionaire received a high amount in toll collection, it did not mean that they had gained big profits as they had to also shoulder various other commitments.
"On average, concessionaires are required to spend 45 to 50 per cent from their earnings for loan repayment, overheads and operation (20 per cent), as well as for repairs and upgrading (15 to 20 per cent)," he said.
According to Fadillah , an estimated 10 per cent of the profit from toll collection is disbursed to shareholders. -- BERNAMA
Bernama
Tue Nov 01 2016
FADILLAH: "On average, concessionaires are required to spend 45 to 50% from their earnings for loan repayment, overheads and operation (20%), as well as for repairs and upgrading (15 to 20%)." - Filepic
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.