Government to compensate PLUS for toll abolishment

Government to compensate PLUS for toll abolishment

Following the announcement that four toll booths will cease collection from January 1, 2018, it has now been revealed the government will pay compensation to PLUS Malaysia beginning next year. This is according to Datuk Seri Ahmad Zahid Hamidi, deputy prime minister, in an article by The Sun.

Due to an existing contract between the government and the concessionaire, which is scheduled to end in 2038, the former will have to compensate the latter for the remaining 20 years as the toll abolishment comes ahead of schedule.

The concessionaire released a statement on Saturday (October 28, 2017), explaining that the 2011 revised Concession Agreement stated that collection at Batu Tiga and Sungai Rasau was only scheduled to end on December 31, 2038.

“The agreement for the concession is up to 2038. So, when the tolls are abolished, it means that the government will pay compensation for the abolishment. The compensation is still subject to the existing agreement that both parties (government and PLUS) have signed,” he told reporters, here, today,” said Ahmad Zahid.

Government to compensate PLUS for toll abolishment

“The bottom line is that users will no longer need to pay tolls at this highway beginning Jan 1 next year,” he noted. The tolls include two in Selangor – Batu Tiga and Sungai Rasau, with another two at Bukit Kayu Hitam, Kedah and on the Eastern Dispersal Link, Johor.

Ahmad Zahid’s statement differs heavily from what second finance minister Datuk Seri Johari Abdul Ghani said days prior. As reported by The Edge, Johari stated the government will not make any cash compensation to the toll concessionaires.

“We will restructure some of the existing tolls that we have not abolished; maybe we extend some of their tenure, to compensate back these tolls that we are going to abolish. The government will not pay anything, we just extend the tenure in the existing toll (under Plus) that they are still operating,” he said last Friday (October 27, 2017).

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Comments

  • Medic on Oct 30, 2017 at 10:55 am

    Tak abolish kena marah. abolish pun kena marah… Pening

    Like or Dislike: Thumb up 12 Thumb down 56
    • Lembukini on Oct 30, 2017 at 12:07 pm

      masuk bakul Angkat sendiri…Syiokk

      Like or Dislike: Thumb up 30 Thumb down 3
    • Michael Arulampalam on Oct 30, 2017 at 12:58 pm

      The concessionaires still have to be paid BILLIONS in compensation. Where do you think the money is going to come from?

      This was a Grand Masterplan. They contract was extended another 20 years just few years ago (2015) so that now, it can be “abolished”

      So now, untung lah the concessionaire. Actually the concesionaire supposed to END in 2018.

      Why the contract was extended in 2015? Better to just abolish it then and further untung cause no compensation need to be paid

      Well-loved. Like or Dislike: Thumb up 74 Thumb down 3
    • azhar on Oct 30, 2017 at 1:50 pm

      abolish & dont extend the toll baru org tak marah

      Like or Dislike: Thumb up 25 Thumb down 1
    • Nicholas on Nov 11, 2017 at 3:08 am

      Marah kerana tak abolish rakyat kena bayar, abolish pun rakyat kena bayar. Masalahnya siapa si dungu yang buat agreement bodoh sebegini?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Krony on Oct 30, 2017 at 10:55 am

    LPPL, raise tax and pay toll company’s, we suffer also

    Like or Dislike: Thumb up 24 Thumb down 0
  • 12yrsold on Oct 30, 2017 at 10:57 am

    Alamak, 2nd Finance Minister Johari Abdul Ghani say NO compensation but DPM said must pay toll abolishment. Macam menteri menteri di cabinet tak co=ordinate ke ??

    Like or Dislike: Thumb up 45 Thumb down 1
    • Periasamy on Oct 30, 2017 at 12:09 pm

      One wanna go East, Another wanna go West.
      Our beloved Malaysia go Nowhere.

      Like or Dislike: Thumb up 47 Thumb down 0
  • sohhai on Oct 30, 2017 at 11:04 am

    There is no free lunch. The abolishment of these 2 tolls will only result in other PLUS highway concessions being extended. It’s akin to robbing Jack to pay Paul. Therefore, please don’t be fooled by this announcement

    Well-loved. Like or Dislike: Thumb up 59 Thumb down 0
  • Mesin rumput on Oct 30, 2017 at 11:05 am

    Menggali lubang untuk menutup lubang.

    Like or Dislike: Thumb up 33 Thumb down 0
  • Whoa ~ It’s advanced payment

    Like or Dislike: Thumb up 19 Thumb down 0
  • Johari on Oct 30, 2017 at 11:32 am

    Stated the government will not make any cash compensation to the toll concessionaires.

    According to DPM, government will pay compensation to PLUS beginning next year.

    Like or Dislike: Thumb up 15 Thumb down 0
  • So people who don’t use these 4 tolls will get a price hike or longer concession..Absolutely FANTASTIC *sarcasm*

    Like or Dislike: Thumb up 14 Thumb down 0
    • So people who use these 4 tolls will not pay to use these highway..Absolutely FANTASTIC

      Like or Dislike: Thumb up 0 Thumb down 9
  • Ben Yap on Oct 30, 2017 at 2:08 pm

    when want to compensate LDP? it’s so jam there and not worth paying. abolish that toll too.

    Like or Dislike: Thumb up 14 Thumb down 0
    • sohai on Oct 30, 2017 at 2:32 pm

      increase more higher LDP toll. go public transports, dont need jam.

      Like or Dislike: Thumb up 4 Thumb down 7
    • Hahaha on Oct 30, 2017 at 3:36 pm

      Tell the state gomen to abolish sunway LDP toll.

      Like or Dislike: Thumb up 5 Thumb down 5
      • KaKaKa on Oct 30, 2017 at 5:08 pm

        State Gomen got no power to do anything on Highway matters, People Power can.

        Like or Dislike: Thumb up 8 Thumb down 1
  • jalankaki on Oct 30, 2017 at 2:56 pm

    abolishment is good, but think what is going on behind the scenes…the COST of the abolishment…how many hundreds of millions of tax payer money paid to PLUS just for abolishment…the tax that u and i paid, burnt due to a stupid concessionaire contract

    Like or Dislike: Thumb up 12 Thumb down 0
  • C. P. MOHAN on Oct 30, 2017 at 3:57 pm

    NOTHING IS FREE!

    Like or Dislike: Thumb up 4 Thumb down 0
  • Mr Kena Tipu Selalu on Oct 30, 2017 at 6:03 pm

    Toll abolishment in Malaysia??? The day will come the sun rise from the west.

    Like or Dislike: Thumb up 6 Thumb down 0
  • old horse on Oct 30, 2017 at 8:27 pm

    Batu 3 tol should be gone long time ago!

    Extend, abolish and given money away for E coming soon usage..Pirates

    Like or Dislike: Thumb up 4 Thumb down 1
 

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