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The government is set to establish a new set of terms for future expressway concession agreements and projects. Particularly, one of its latest terms will involve the right to terminate concession agreements prior to any initially agreed end periods.

According to a Bernama report, Datuk Seri Abdul Wahid Omar, a minister in the Prime Minister’s department, said that this new term can be exercised when related concession companies manage to exceed their initially projected profits.

The minister’s comments were in response to Datuk Fauzi Abdul Rahman’s (PKR-Indera Mahkota) questions at Dewan Rakyat today of whether the government would be willing to review its privatisation projects, in favour of keeping the ones that around found to benefit the people, and cancelling those that add further cost-related burdens to them — he was primarily referring to the recent toll hikes set across the Klang Valley.

Abdul Wahid also said that there is little Putrajaya can do surrounding existing and current concession agreements without the concession companies first agreeing on any modifications to the original terms. He did, however, mention that there are occasional talks between the government and the highway concessionaires to prevent these companies from blindly increasing toll rates further.

Wahid told reporters that, “yes, in the concession agreement, they are allowed to increase the toll rates from time to time, but we still want to ensure that the rates remain reasonable.”