The government’s proposed RM6.2 billion takeover of four highway concessionaires will not see motorists be free of toll, but we’ll be paying less, according to Lim Guan Eng, reported by The Star.
The four highway concessions are Litrak (the operator of LDP), Sprint, Kesas and the Smart Tunnel. Gamuda owns significant stakes in the companies, and its board of directors has voted to accept the government’s offer.
According to the finance minister, the takeover bid is being done in the name of public interest. With the congestion charge system in place, the highways will be toll-free during off-peak hours and toll rates will be 30% cheaper outside of peak hours.
“This is because the government is not an organisation looking to make a profit. We have taken out the element of profit and are doing it for the public good unlike private enterprises which must make a return,” he said in parliament today.
Answering questions from MPs, Lim said that a study was conducted by a local financial institution before the takeover formula was presented and approved by the cabinet in February. He added that the formula will see the government save at least RM5.3 billion in compensation to the four concessionaires for not raising toll rates over a period of between nine and 23 years.
“It will also see consumers saving up to RM180 million in toll charges during the concession period which will help increase household income by at least RM2 billion during this period,” he said.
The minister stressed that the highway takeover move will not incur cost to the government and that toll rates would not be increased. This is because the takeover will be financed through bond issuance, with congestion charges used to pay off the debt.
Lim later told reporters at the parliament lobby that congestion charges will be imposed throughout the concession periods (between nine and 23 years), but it was the government’s hope to abolish toll altogether after that. However, nominal toll charges may still be imposed to cover operational and maintenance costs.
The government intends to implement the new congestion charge system by January 1 next year.
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RM6.2 b enough to buy over whole Gamuda or produced 10 hollywood superhero movie, Nobi..
Leave this highway issue to the works minister. Nobi should focus on his portfolio: clearing debt.
Agreed
Agreed. More logical to implement No tolls during peak hours, when the morning rush and evening. Charge tol only from 11pm-5am.
to encourage more cars to use the highway during peak hours? I thought the crawl now is already bad enough.
HEAR! HEAR! YOU SPEAK THE TRUTH!!!
haha… better than previous gov… build road build tolls even in the city to city, town to town within the same state…
not everyone use toll morning back evening.. at least some benefit from this move.
so you think remove toll like you say eat chicken, then drive to kfc and eat just like that?
Do you realise who made that decision to build toll roads everywhere? Yes, the guy sitting on top of the current government.
So who do you think should be blamed?
Ha ha ha ha ha … ;)
please check your facts, how would 6.2b be sufficient to buy over a 9.6b market capped company? and that is excluding any premium on goodwill
The company value is overweighted. It needs a scandal to pull down that valuation just ngam-ngam to 6.2Billion. But no worries, these folks in the Cabinet are masters at this dark arts. Leave it to them.
Wow. This is great news. Thank you for such a kind move. This will save us a lot of money. Janji sudah di tepati.
I hope those frustrated don’t come here with 50 dupes and kutuk our great and kind government.
Cannot blame them, before they took over, they thought debts were only RM100 billion. After they took over, they saw the hidden debt of RM1 trillion.
So with such a big hidden debt, how to give totally FREE tolls?
Wow the blind trolling is really thick. Where’s the janji to abolish toll? Stop talking crap.
Copy paste: “Abolish toll mana? Janji mesti ditepati!”
Not only big hidden debt, Cash advances oso ..
If nobi is doing his finance job n not this highway job then the debt shld hv been cleared
This senseless (and likely paid) shrill has no place in this blogsite. Please leave if that is your intention. Like really.
Yalorrr, typical most Malaysian mentality, semua mau free. They think road maintenance tarak pakai duit ka?
Because for the past 60 years they never once look at the figures from BNM. For 60 years they have been making alternative budgets pluck from thin air.
Sometimes I really wonder what they do in parliament previously.
Hopefully our regular troll does not come here with his 50 different dupes to try to create an impression so many hate our kind Government.
In actual fact, everyone loves the good acts done.
1) No GST
2) Cheaper tolls
3) Petrol fixed at RM2.08
4) Cheaper car prices with SST
5) Cheaper 800Mbps broadband at RM159
6) No more leakages and corruption
No 4 is joke of the year. GST 6% cheaper than SST 10%?
It is very simple. Government needs money to maintain the over bloated civil service of 1.6 million people.
Until we downsize the civil service, the Government will need toll money to maintain the largest civil service in the world.
bro..all countries do not count military, police, health and education as civil service
If downsized then who will teach your future generations, keep you safe from harm, send you to the hospital, and at hospital cure you from disease? You better knock on sinsehs’ door in the middle of night and make sure you have plenty of money on hand cause private healthcare isn’t subsidised. My fees will literally kill you if the disease didn’t already.
you actually believe the human waste they feed you..
Such a good ostrich you are. What a wonderful pet Bro has.
Toll free and less toll is not the same. Promised not fulfilled.
Everything also want free. Work hard like people in other countries. Too much of pampering and special priviliges have made people very lazy
Preventing more tolls to be made is considered less tolls too.. I’m wondering if you’re actually a chinese or just a cover up..
What about SUKE?
It takes a smart person to know this is going really wrong.
Obviously you’re not one of them because instead of wondering why is the government suggesting to be indebted so much with no realistic savings, you’re wondering about race.
I suggest you keep your wondering thoughts in private.
Nak tipu siapa? Congestion charges only works against peak users & that happens during rush hours to & from work. Other countries uses congestion charges for encouraging travelers to use public transportation but our public transportation is like s**t, ever since you make it harder for Grab drivers and cancelling more MRT & Rapid bus projects.
Go try it yourself instead of talking & screwing us!
You write it exactly right congestion charges works during peak hours that is why it is the right move to do congestion charges rather than flat toll! Ppl travel late night can pay less. May I know if you have better/construction suggestion on this?
So easy we keep complaining whatever decision made but in reality it is no easy issue. Worsestill when some just like to be spoon-fed.
Did you even read finish that erudite comment? The answer is clearly and obviously there: Improve the public transportation network that it makes traveling on highways during congestion period an OPTION not a MUST. If Nobita minister wants to do his part in this idea, go mandate private companies to have flexi workhours for their employees. Leave the transport matters to the Transport Minister.
Yeah stop screwing the rakyat. Very painful worrr
They issued bonds to raise funds for the concession takeover, which will see them charging toll on the highways beyond the concession period. So in effect, the government is incurring and guaranteeing debt for this exercise. Furthermore, it looks like the tolls will be perpetual for the maintenance of these roads, rather than having them transferred to be fully under JKR as federal roads.
Short term effect (until concession period)
– No more toll hike
– Off peak hour charges (reduce 30% or free)
– No more compensation to operator
Long term effect
– Toll after concession is over for maintenance
Not sure
– Opex budget for maintenance
– Gov debt (but gov said, it’s self paying. Hence sustainable unlike MRT & Pan Borneo)
Let’s wait and see hole path highway soon with maintenance not carrying out , almost guaranteed , then few years later said it’s losing too much and sell back to highway company
I only travel during peak hours, so will incur congestion charges , which i presume will be same rate as current toll charges. Therefore, unable to see how i can enjoy the savings….
Please use public transport like bus during peak hour will save your pocket
Govt said lower than current toll rate.
Abolish toll mana? Janji mesti ditepati!
Now capati sudah..
Right click an replace Toll to Congestion
those BODs also clever…they expect their toll collection will be less in future once those MRT projects completed and maintenance cost going up each year … better sell now … why no mention of advertisement space rental to pay off debt/maintenance..
smart badak, do you know that the pricing formula and compensation clauses are all provided for in the concession? Govt cant just simply buy back at any price it wants to.
They can always buy the toll concessionaires like what BN did with PLUS last time then they can buy uncle kentang’s price rm0.10
Why no tolls until now? Hancing?! Kching kching!
Stupid planning
What’s your planning then, genius?
Then what do you want us peons to do, if going work during congestion period is not viable and public transport is unavailable?
Walk the kilometers to opis and back?
Is this what genius can think of?
How about ?
1) Duke
2) Besraya
3) Akleh
4) MEX
5) Guthrie
U/C
6) SUKE
7) DASH
8) West Coast Expressway (WCE)
Ph don’t keep their promises. Toll free n congestion charges whatever is the same thing. Really king of spin. Who will be benefited most from this,? Must be bosses, not rakyat.peak hour is where normal people rush to work. They are going to pay full toll fee. Just my 2 cents view.
Hope my roti canai price will go down after this
Dont worry guys, next election the oppo manifesto will include ‘Properly abolish toll’ and after the election we will switch side once again so we will again becomes keyboard warrior in any online site/portal mentioning abt how the janji is dicapati+teh ais ikat tepi.
We will try our level best saying/defending this and that suggestion is the best and how the previous gomen is best.
What we fail to see is that most of the rulers are still the same, enjoying their stay while we continue with our daily lives which include the mandatory queing at ATM machine every end of month.
He should spend more money for his hair. Maybe then brighter ideas will come out from it.
Bg org bodoh pegang kuasa jd beginilah. Sana sini pusing2…
the non peak hours and peak hours will be 5am to 1am (peak hours) and 1:01am to 4:59am (non peak). rest assured, untung mesti mau.
off-peak hours and outside of peak hour is the same thing
you need to rewrite this sentence:
the highways will be toll-free during off-peak hours and toll rates will be 30% cheaper outside of peak hours.
1 suggestion :
If can’t for fill promise, at least make every Saturday & Sunday toll free for all nation..
We vote for free tolls.. Not congestion charge
It is a very good movement from new government! This will benefit both ‘rakyat’ and government in short and long run. Good move! For those still condemning this move, please go read some management stuff!
Removal of tolls is an absurd move. Tolled roads are there for a reason: they give a choice to avoid badly jammed roads which charges no toll. If tolls are abolished then all highways will be jammed. Then we complain again say everywhere jam and consumption increase because stuck in jam bla bla bla. Malaysians, Malaysians…when will you ever learn?
When you go Puchong, where can you avoid the LDP? If there is an alternative, many would take it and not jam the LDP on a daily basis.
Implement the RFID system quick, I don’t mind paying tolls but I hate to queue to pay tolls.
We mind paying tolls cause we voted for no tolls. Now janji is capati.
That’s you, I don’t mind paying small amounts to keep the road free of pot holes, pebbles and garbage that could cost me more in terms of maintenance. Look at the condition of federal Highway. I did not vote for no tolls, I voted for no corruption and no najib.