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.