Government may extend highway concession periods by up to 30 years to prevent increase in toll rates – paultan.org
To prevent future increases in toll rates, the government is considering extending the concession periods of highway operators by up to 30 years, according to the Malay Mail that referred a report by The Edge.
Unnamed sources told the publication that such a move had yet to be greenlit by the Cabinet, but if it does, an announcement could be made sometime in the second half of this year. “I was told the government is looking to raise it up to 30 years for all concessionaires,” one source was reported as saying.
“It is likely to be announced in the second half of the year,” the same source continued, adding that highway operators have already been notified by the government of the possible extension of their concession periods.
Meanwhile, a second source who is reportedly close to a concessionaire said the possible extension was in the government’s interest to prevent toll rates from being hiked as well as to avoid paying compensation to highway operators.
A third source adds that longer concession periods could lead to a reduction in toll rates. “It is likely that the highway owners would need to reduce their toll rates in exchange for a longer concession period,” the source was quoted as saying. This has happened in the past, as back in January 2020, PLUS Malaysia reduced its toll rates on its highways by 18% after its concession was extended another 20 years to 2058.
Source: Read Full Article