Toll rates for 20 highways are not planned to be increased next year, but the government is expected to pay RM558.69 million in compensation to highway concessionaires as a result, Bernama reports.
The 20 aforementioned highways are:
- Ampang-Kuala Lumpur Elevated Highway (AKLEH)
- Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT)
- New Pantai Expressway (NPE)
- Kajang Dispersal Link Expressway (SILK)
- Storm Water Management and Road Tunnel (SMART)
- South Klang Valley Expressway (SKVE)
- Sungai Besi Expressway (SBE)
- Senai-Desaru Expressway (SDE)
- Butterworth Outer Ring Road (BORR)
- Guthrie Corridor Expressway (GCE)
- Kajang-Seremban Highway (LEKAS)
- Duta-Ulu Kelang Expressway (DUKE)
- Maju Expressway (MEX)
- Damansara-Puchong Expressway (LDP)
- New North Klang Straits Bypass (NNKSB)
- East Coast Expressway (ECE1)
- Kuala Lumpur-Karak Expressway (KLK)
- Cheras-Kajang Highway (Grand Saga)
- KL-Kuala Selangor Expressway (LATAR)
- Shah Alam Highway (LKSA).
“An allocation of RM458 million has been approved to the ministry to pay the compensation. An additional allocation will be sought in mid-2015,” deputy Works minister Datuk Seri Rosnah Abdul Rashid Shirlin said, adding that 17 highways will get their compensation next year; the rest in 2016.
The compensation amount is based on a formula stipulated in the concession agreement, and the actual amount will only be determined after the Malaysian Highway Authority (LLM) completes its traffic verification process, she said.
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As always, the concessionaires win, toll or no toll hike. High five to whoever drafted the darn agreement.
it is a sure win bet for the cronies…
when any highway not doing well as expected (like Port Dickson Highway), gov will then buy back, we rakyat pay!
damm!
U mean seremban-port dickson highway….that is done during era of PM in waiting…
i like you kzm. come i give you a clap.
.that is done during era of mahathir and BN .
I really love doing business with our government because I’m sure making profit, rain or shine.
there shd not b so many toll fr d beginning. using tax payer money to construct then assign some dog ass to collect toll n never payback to central govt. plus d highway road condition in KL is getting worse especially raining season
OMG…BN – bodoh and nonsense agreement..
people happy, crony also happy!
win win situation ma!
Dude….. G money come from u!
It’s crony happy, G happy!
People suffering!
You have no idea….
The fact is, the G money comes from you and I.
GST? Petrol price? AES? Ops Cermin gelap dan plat nombor? List goes on… Oh yea, lets also not forget the undelivered promise of car price reduction?
Rings a bell bro?
Ahh no wonder RON97 price drop and willing to reduce price of RON95.
Makes sense now.
So whole malaysia loses rm550mil because some idiots dont know how to draft agreements. 550mil can build 2 new hospitals or 10 new schools…
Good job BN…syukor negara aman!
bravo bravo… NATO (no action talk only)
If not mistaken 1/3 of the highway is done during former TPM aka PM in waiting….
With respect sir, whatever your are trying to repeatly portrait here, no decent ordinary rakyat cares.
This is a regime of 50 years corruption, that’s for sure.
With respect to u oso…I just reveal who the one who make those idiot agreement to commenter above…is that wrong? Nobody care n yet u say 50 yrs corruption..
with respect sir, 50 years of corruption, since they were giving it for free for PATI.. since 1957..
yes. back then TPM is da BOMB! when you get appointed as the TPM, you could also decide when it rain or shine.
after all, there’s no cabinet, no ministries, no kings or queens, not even a PM. there’s just the TPM.
so it’s all his fault! all the 1/3. that’s like 97% yo! so we round it up to 100%. all his fault. all 1/3 of it.
blame it all on the ex-TPM. he’s the one making your lives miserable. and also the jews. blame it on the TPM and the jews. they did it!
i like you kzm. KZM for TPM!
if not mistaken 1/3 of the highway is done during mahathir and era of BN.
I got this from a blog…
http://3.bp.blogspot.com/-qJCpblexhFI/UrPPE80AsUI/AAAAAAAAZcA/9B-cV9kwm7g/s1600/TOL-1.jpg
and yet he’s still waiting.. :D
Obviously you have no idea of the massive capital expenditure required to build and maintain tollroads. Tollroad operators in Malaysia probably make less than 10% IRR on their investments.
We as a nation needs to improve our expertise and productivity, reduce corruption and build up our national reserves in face of the dynamic challenges in an increasingly globalized world. There is no where to hide if we are incompetent ourselves.
…and the government entrusted 1MDB to invest on behalf of the people. Bravo.
What not enough returns? Promised less traffic jams and still the same. And what tabulate the traffic( $ ), jam everyday, with the amount of vehicles passing thru the toll I’m sure they are making money from it. If not They can always extend the contract and not burden the rakyat with increased toll rates. You naik your bapa’s kereta, your bapa’s money sure comment the other way around la. Anyway no use complaining. hidup BN
There shouldn’t be tolls in the first place. This is simply bright day robbery.
Yes! Massive robbery!
basically.. you run a business thats guaranteed profits by the govt.
Because they are committed to create some cronies billionaires,, what better way than this kind of business model?
I still cannot understand how this compensation works and why government need to pay the concessionaires? Aren’t they collecting toll from us?
The agreement has been drafted in such a way there’ll be compulsory increment every 3-5 yrs . If no increment happens(public backlash) , the gomen has to compensate either through gomen coffers or increased duration of toll . And the million dollar question is why the agreement appears stupid ? That’s because the politicians who are involved have some stake in the companies as well . BN politicians are not stupid after all
I think the deal is like a type of PFI. Private Financing Initiative. The Government puts a guarantee and the private sector funds the project. Studies and negotiations will be done first that says the private sector will get x amount of income from the toll. If the amount is not achieved, the government will compensate. This type of funding is first used in the UK many many years ago and there are many types of PFIs structures. There are advantages and disadvantages with these type of financing structures.
This sounds right… but isn’t there an end point? Ie, the private sector will get x amount of income from the toll. If the amount is not achieved, the government will compensate. Compensate how many times? It can’t be keep compensating each time for each failure to meet the “x” amount? What if I am the concessionaires that is greedy and say, upgrade a row of streetlights to LEDs and make that profit (x amount) deficit to increase? Is this the catch-ball game the gomen and concessionaires is doing? WTF!
thats the point , the more we DONT understand the better for them…nobody is checking blances so thy can do anything , im just surprised is not rm1 billion only rm560million…
the stupid gov signed a contract allowing the toll operators to increase the toll X% every year. Under the agreement, if they dont get to increase the tolls X%, gov has to pay them Y% compensation.
Win/win for the toll operators (which are all cronies)
The gomen is not stupid! Infact they are very clever. We Malaysians are stupid.
the most stupid deal ever!!
yay! BN can use this as an example “rakyat didahulukan”.
plowing money to build a highway for the greater good of the rakyat is a risk, its only right if the owners are being compensated
If they can’t take the risk, they should stop and go work for someone else. If you want to do business, you have to take the risk, not ask the govt to be your sugar daddy.
Many of these highways probably are making losses because of low volume. That’s why they want to pay compensation instead of raising the toll.
Why not do the same for Federal Highway and NKVE?
Where is the data to back your claims of low volume? LDP and MEX is certainly not low volume.
Did I say “ALL”. Did you see the word “PROBABLY?” LKSA & LATAR are certainly low volume highways.
Ala spekulasi la banyak komen ko.
i think its not wise gov to pay compensation. for a people who stay outside KV, we did not enjoy that benefit. Let KL people pay expensive toll, but the compensation can be build a hospital at another place
Compensation is for them to continues to get rich whether rain or shine. Take maju highway as example, the G built it and then sell it to crony for peanuts.
Funny! They make stupid agreement by themself but no need to responsible for it. Whether toll hikes or pay compensation, where the money come? at the end still rakyat is the one gonna pay for this.
not this trick again!! not making money then gomen have to compensate. best business to do in the world
each concessionaires earn millions of RINGGIT from toll collection yet still push for price HIKE….agreement signed between them and G make no sense.
Why not list the highways using their E-numbers? Much simpler to remember IMO and makes road signs in Malaysia less redundant.
Wow…what the fcuk is the b.end gov doing to us? 1mdb, mas, fuel fiasco, gst and now this! It seems they’re really milking off the ordinary ppl on the street. I doubt they have any conscience in their peanut size brain of the hardship we have to endure. Bravo/ salute to this administration.
It doesnt really matter while you are taking it from my left or right pocket.
Wah!! So many haters!
I wonder how LGE is going to draft the toll rate for his undersea tunnel. He hasn’t abolished the Sungai Nyior toll plaza so far, despite all the hue and cry pre-GE12.
You all are also bunch of hypocrites! You all want highway grade roads, with tow truck patrolling every hour and adequate rest areas, but don’t want to pay for the perks. How about those living on the east-coast? They pay the same road tax as yours but don’t get to enjoy the higher quality road as you all.
Be sensible lah! You think how LGE is going to draft his highway agreement? I bet it’s going to be the same. You all done cash flow before or not? You all have heard of inflation and dollar value depreciating or not? RM1 today not equal to RM1 next year.
LGE gives land to reclaim for the undersea tunnel concessonaire, that’s even worse! Land 90% of the time appreciates in value, that’s loss of revenue for Penang state already!
Don’t be selfish and stupid.
Cash Flow, inflation wahh you know big words… Let me teach you another term my dear school boy. “Business Risk”. The PFI structure spreads the Business Risk between the Government and private sector. At this point all risks are being borne by the Government with compensation. For low volume highways, the concessionaires should have had a better traffic estimate. Else don’t build the highway. With this compensation it does not derisk the Government. It only allows for reckless behavior since concessionaires are assured of revenues. Sekian. Ucap terima kasih kepada colour anda murid-murid.
Inflation, DCF, those are not big words, those are among the super basic things any banker would look into when they work on cash flow.
Hurdle Rate for highway is around 10-12% w/o spreading the risk with G. If you get your IRR below this, might as well park your money in FD. Don’t tell me there are many ways to skin a cat, but the gold-standard in project viability measurement are always NPV and IRR.
Traffic projection/cash flow projection remain just that… projections. That’s why the hurdle rate is so high someone else has to bear the bulk of the risk who in the end take ownership of the asset. Tell me any other highway in other country which has different model, please be specific. How about Lim Jr’s undersea tunnel?
Public needs highway to stimulate growth along cities and townships as well as driving away traffic from the already congested routes.
G need to spend money on infra and maintenance. Where’s the money coming from? Either from you and me, or you charge toll on the people who use it.
That’s the basis of alternative road, hence the toll road although it may seem simplistic to small minds. Hence, the E1 as alternative for 1, E20 for 20 and so on… Problem arises when alternatives road like LDP becomes main arterial road and take a beating of 1 million cars per day.
Don’t be an armchair critic. Come out with facts and figures.
I honestly don’t understand what you’re trying to say my dear school boy. If projections are so unreliable why bother with them anyway? Just come up with a simple projection, impute a high hurdle rate and that’s that. Justify based on “economic growth” and ease of traffic flow and done. A new highway! And even with actual traffic surpassing projections, compensation is still due. So tell me what’s the real spirit of the agreement (there new term for you) then? Any for low volume highways do we really need them anyway?
Also please don’t assume I agree with the proposal in Penang. If it’s lopsided, it should be bashed too. Assume makes an @$$ of welll, you not me.
Hence, the hurdle rate, duh!! The whole uncertainties, translated into numbers.
Traffic surpass projection, so the load on roads doesn’t surpass projection is it? The maintenance cost remain the same is it? How about the interchanges and road widening initiatives on LDP? Wasn’t it done to cater for oversupply? Even if you know nuts, please be observant a bit on your surroundings.
I went to school alright, but you? Armchair analyst like you would be ‘smart’ enough to come out with one solution fits all. Where’d you learnt that? Don’t tell me LGE’s think tank Penang Institute.
we are past talking about “projections”. the highways have already been constructed long ago and operating for many years. its already proven that they have been making huge profits and more than recovered their costs. why are u still talking nonsense about projection ?
Can you share the draft of this so-called agreement? Unlike your allegations, this compensation is not a rumor or hearsay, it is published fact. So where are your facts?
While Pakatan stooges disgust me, BN stooges who are blind to daylight robbery are just the worst.
Unlike the rest of us here, we can’t read LGE’s mind like you. Did you use two coconuts on a carpet to accomplish this?
I use my mouse, keyboard and my computer and just a wee bit of common sense and surf the internet to acquire all the informations pertaining LGE’s undersea tunnel pet project.
You should try that sometimes. It wouldn’t hurt to use more of your brain capacity.
Abih mana fakta2 ko?
kambing,
you all said the payment to concessionaires are unjustifiable. so me your calculation first.
looks like BN dogs like ripcord are becoming more and more arrogant . using taxpayers money to get overseas education, then come back to malaysia and insult the taxpayers who fund BN’s corruption with their UK/AUS english.
LGE has to give land to developer because he has no money. only the federal government has the power over tax money and guarantees. do you expect LGE to fund infra projects using money collected from parking saman ?
sure or not..compensate this, subsidize that..hundred of millions $$….our G can tahan meh..?
tell the truth lah..no need to compensate for toll…still jammed up whether u use toll road or not… use d money to give us cheap good quality fuel…
my legacy after all these years
hmmmm…..PLUS is not in the list
can anyone come out a complete list of all highways in Malaysia that collected toll fare and the collection agreement until when (expiry)?
The best part of the agreement is the terms are not disclosed to the rakyat which ultimately foot the bill.
Only in Malaysia, there is such a business that is guarantee profit with no business risk.