KUALA LUMPUR, Sept 8 — The government will negotiate with highway concession companies to reduce toll prices if they have achieved returns on their investments (ROI), said Works Minister Datuk Seri Alexander Nanta Linggi.
According to Malaysia Gazette, Nanta explained that this move aims to lower toll rates, as expressed by Prime Minister Datuk Seri Anwar Ibrahim today.
“This is the government’s hope because tolls are collected as long as there is an agreement, and toll concession companies receive loans from banks to develop highways. These loans are repaid through tolls.
“Therefore, once these highway companies achieve ROI, it may be possible to negotiate with them to reduce tolls.
“Removing tolls completely could create other problems, such as an inability to cover maintenance expenses. We fear that the standard of highway maintenance might drop due to excessive reliance on government budgets,” he was quoted as saying during a press conference after the launch of Malaysia’s first sustainable Rest and Recreation (R&R) area in Seremban today.
The same Malaysia Gazette report quoted Nanta as adding that the proposal to reduce toll rates will be considered after the concession period ends.
“We will provide our views when the time comes, but for now, the rates might remain unchanged to avoid burdening the government with the full cost of highway maintenance.
“We will assist highway users after the concession companies achieve their ROI. At that point, there might be room to lower toll rates,” he said.
Nanta’s comments followed an earlier statement by Anwar, who suggested that reducing toll rates is feasible if highway development costs are controlled and if there is no leakage or corruption.
