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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