Only four highways in Malaysia are entitled to toll hikes in 2017, based on current concession agreements, according to minister of works, Datuk Seri Fadillah Yusof. If the hikes are to be deferred, the government will have to compensate an estimated RM59.77 million in total.
The four highways are the Johor Bahru Eastern Dispersal Link (EDL), Kajang–Seremban Highway (LEKAS), Senai–Desaru Expressway (SDE) and the Guthrie Corridor Expressway (GCE). The last three highways last revised their toll rates in October 2015.
This was mentioned in a written reply to Lim Guan Eng, who asked about the amount of compensation required from the government should the toll rates not be hiked. In the Dewan Rakyat, the Penang chief minister also asked why the North-South Expressway (NSE) tolls had not been scrapped yet.
Fadillah said the NSE was built in 1989, and completed in 1994 at a cost of RM5.9 billion. This was borne by the concessionaire, while the government covered the costs of land acquisition. The highway concession was supposed to end by 2018, according to the original agreement in 1988, but efforts made to minimise the impact of toll hikes led to restructures in 1999, 2002 and 2011.
“Under the last restructuring (2011), all expressway concessions under PLUS Berhad, including the NSE, have been standardised, that is ending on December 31, 2038,” Fadillah said.
By the end of 2015, the overall toll collected on the NSE was RM36.39 billion. Meanwhile, the total amount of compensation paid out to PLUS following the deferment in toll hikes until 2015 was RM917.1 million.
However, Fadillah explained that a high amount of toll collection may not necessarily lead to big profits. “On average, concessionaires are required to spend 45% to 50% from their earnings for loan repayment, overheads and operation (20%), as well as for repairs and upgrading (15% to 20%),” he said.
Only an estimated 10% of the profit from toll collection is disbursed to shareholders, Fadillah concluded.
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all things naik, let’s cheer for the jibby gomen
i wll b the last 1 cheering him..
Buddha said USA tolls can hike every single year, if not, USD 8 Billion has to be paid as compensation.
You cannot see the agreement between Buddha and USA; that’s the beauty of Official Secretary Acts in USA.
Don’t correct my Chinglish.
All Malaysian entitled for paying price hike.That sentence much appropriate leh.. when general election comes these hike price announcements will circulate in the air non stop then later putrajaya clowns will ‘come forward’ to voice out their ‘concern’ towards rakyat.. Then play their ‘intervention’ for the sake of burdening rakyat..Wayang lor.. Same goes to Selangor people now facing water ‘contamination’ just to make Selangor Government in bad image.Selangor people will face these sabotage until GE ends.People of opposition states,brace yourself for many other unprecedented events from now on.Don’t surprise if suddenly cheap washing machine or rice cooker sold out faster than goreng pisang too..Raise your tongue if u agreed.
inb4 Toll discounts on Cuti Umum.
This so call govt now everyday love to take our deepest heart curses with pride.idiot
There you go, from 2108 extent to 2038. The best part is, the news came out and how many citizen read it and … where’s the response!?
My take is even it extent to 2138 also the M’sia citizen will till let the gov stay in office.
Why hike? Malaysia is the only country in the world charging RM100 million for just 1KM of highway. That also, using super cheap Bangladeshi labour.
The concessionaires build the highway cheaply and overcharge the Government. Then the Government also give them long contracts with options to increase every 2 years.
Amazing business. Build 1KM of road for say Rm20,000 but charge RM100 million. Whose money to pay concessionaires? It is our hard earned tax payers money
I think the concessionaires take loans out from banks to build this highway and not government money. Get your facts right.
I think the concessionaires take loans out from banks to build this highway and not government money. Get your facts right.
True statement. But one thing which is missing – contract is lopsided, to ensure the concessionaires make money and channel a big chunk of fund back to UMNO machinery.
how else can the concessionaires secure multibillion ringgit loans from the banks if not for the FAT tenders awarded by the gomen?
Obviously you are too naive for the game.
I think you’re sole idiot. From your description, I can say I take bank’s loan to buy my house but not my money.
For all we know, every single point in building highway or railway, the USA has to pay RM 188K per point as gantirugi tanah, although the tanah is deep inside jungle.
You simply cannot build the road on mid air.the road is cheap but not the land.there is nobody in the world want to sell thier land for a peanut
1994 – 2018, PLUS collects toll for 24 years and say didn’t collect enough to cover expenses. now extend another 20 years.
that’s outright the works of the cronies and by 2038, PLUS will claim that they still don’t earn.
car sales grew from 80K a year in the 80s to 300K+ in the 90s. and they were using that formula as basis to calculate profit to sustain. that is saying they are anticipating every year 300K new cars put to the road. but then, enter the new millenium car sales rose over 400K. crossing over 500K units every year for the past 10 years. that means highway conssessionaires are making more money than what was planned.
Pls tanya bunga, instead.
Bro watcha smoking?
Wow.. good news to allz.. wa can happy..everything is going up..
What business is best in MY? That’s is highway! Because this business janji untung. Jikalau rugi, company require to extend contract due to didn’t hit profit number. If don’t want extend, nvm…. Gov still pay compensate of hike toll fee. This business guarantee untung…. Siapa kena mental-ry , boleh buat business ni.
WOW … extend another 20 years till 2038 … sampai bila bila pun tak merdeka!
Bodoh piang.. jawapan dia.. ko dah sambung konsesi selama 20 tahun.. mana dtg nak bayo hutang 45~50% from their revenue. Awatlah jahil sangat pak menteri Malaysia nih? Semua nak jadi pak pandir moden? Byk tgk maharaja lawak? Dah la baghal nak memimpin rata2 rakyat Malaysia yang makin berpendidikan?
Wows…. your cost is 5.9 billion…u collect already 36.39 billion… government give extra 917.1 million….u need to pay 50% loan..so half from 36.39 billion is 18.19 billion….sooooo…..5.9 billion become 18.19 billion… still need to pay??? I very confuse la minister…u think every one every body is bodoh yeeee…
Highway in our country seem more like a tool for government income rather than helping rakyat
what a WONDERFUL world
I think this one really masterpiece of Tun M. He’s the one responsible for all these highway. I think what the current administration should do is tax these highway concession holders heavily so that part of their heavy handed profit will go back to the government coffer, instead of increasing people sufferings by reducing subsidy.
Ur true in the 1st part, but most pipu here got hooked line n sinker. What Gov is doing, is to slowly buyover the hiways but then theres the issue of paying off the bank loans undertaken.
bravo so many things naik harga….high income nation status achievable by 2018 or earlier…yay!!!
Syukur syukur sangat becoz our tol and petrol prices are still the lowest in the world.