Govt to save RM4.3bil in highway concessions takeover


PUTRAJAYA: The government will save RM4.3bil in a takeover of four major highway concessions, says Datuk Seri Fadillah Yusof.

The Works Minister said the takeover by Amanat Lebuhraya Rakyat Bhd (ALR) would effectively end toll hikes involving the Kesas, LDP and Sprint highways.

"Under the previous model, the government would have to pay the concessionaires about RM6bil.

"As such, the Cabinet requested a review.

"This approach will see the government saving about RM4.3bil," he said at a press conference on Monday (April 4).

He said under the concept, Kesas Sdn Bhd (Kesas), Lingkaran Trans Kota Sdn Bhd (LDP), Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint) and Syarikat Mengurus Air Banjir Dan Terowong Sdn Bhd (SMART) will come under the management of ALR.

"There will no longer be toll hikes involving these highways," he said, noting that the previous agreement allowed the companies to call for a toll review every five to seven years.

He added that employees under the four concessionaires will be retained by ALR, assuring them that there will be no retrenchment.

He said the approach taken was more towards ensuring the continued maintenance of the highways and settling of government debts.

Under the takeover, he said SMART will end its concession period earlier.

For Kesas, LDP and Sprint, a toll review would be carried out at the end of their concession periods.

Fadillah noted that there would not be an automatic extension of the concession period, as this will be based on traffic volume.

He added that the government also aimed to settle its debts before the end of the concession period.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Malaysia's success depends on quality of human capital, says Fadillah
Year 4 learning matrix for early intervention, not pupil, school ranking, says Exams Board director
TAR UMT tax exemption only approved for three years, not 10 as announced, says Dr Wee
Malaysian detained in Macau has criminal record involving drugs, says Bukit Aman
Health insurance rules, EPF retirement saving among highlights in Dewan Rakyat today
State polls: Mengkibol needs stronger economic drivers to retain young talent, says BN candidate
Signs of growing Chinese support
Heavier workload without pay
Eight Malaysian cultural arts recognised by Unesco since 2014
RM26mil in illegal alcohol seized in Kuching

Others Also Read