PETALING JAYA: The Works Ministry has quashed rumours about the speculated Plus toll hike by saying that there won’t be an automatic hike.
In a statement released on Tuesday, Works Minister Datuk Seri Fadillah Yusof (pic) said the government has yet to make a decision on the new toll price.
Fadillah added that a committee would be formed before end of this year to renegotiate the new toll rates.
He added that the committee would comprise key stakeholders such as the Finance Ministry, Works Ministry, Economic Planning Unit (EPU), Prime Minister’s Office, Attorney General Chambers, Malaysian Highways Authority and Plus.
“We wish to point out that there would not be an automatic hike for Plus and the government has yet to make a decision on this,” he said.
Fadillah said he was aware of the recent speculation that there would be a toll increase next year for highways owned by Plus
He confirmed that Plus has renegotiated its concession agreement that provides for a 5% toll increase every three years.
Fadillah explained that the Plus Highways Bhd agreements were renegotiated based on a legacy concession agreement that previously allowed a 10% hike in toll prices every three years, which was decided under a previous prime minister.
“When Plus was completely acquired by UEM and EPF in 2011, the agreement was renegotiated and reduced to 5% increase every three years,” said Fadillah.
He added that the last toll increase for Plus was in 2005.
“Since then the toll rates have not been allowed to increase although it was provided for in the agreement for toll increase in the year 2008 and 2011,” said Fadillah.
He said the government has compensated Plus.
“The government has been successful in renegotiating and have compensated Plus to maintain the toll rates in the last 10 years.”
Fadillah added that the Works Ministry intends to honour the promise made by the ruling government in 2013 that they will gradually reduce rates on intercity expressways by 2018.