Saturday June 14, 2008

Toll rates likely to be reviewed

PETALING JAYA: Toll rates are likely to be reviewed to lighten the burden of the people in view of the recent fuel and electricity price hike.

According to CIMB Research, the Government was reviewing all toll concessions and a decision would be made in August after completion of the three-month review of all highway concessions.

“This (the review) is likely to result in toll rate cuts or possibly even a takeover of highway concessions. Fortunately for the concessionaires, the Government has said that it recognises that it should provide compensation for any changes to concession terms,” the research house said in a report.

Currently, there are 22 operating highway concessions managed by 17 concessionaires. The major concessionaires that are listed are PLUS Expressways Bhd, MTD Infraperdana Bhd and Lingkaran Trans Kota Holdings Bhd (Litrak).

There are six potential new highways, with an estimated total cost of RM11.8bil and concession periods of 30 to 40 years.

“Even though toll rates are pre-agreed, there are review mechanisms that allow for changes to the terms. Any deviation from the terms would require the Government to compensate by way of cash or an extension of the concession life,” CIMB Research said, adding that concessionaires would prefer cash compensation.

The research house pointed out that Litrak was reimbursed RM75mil as its toll charge was lowered from RM2.10 to RM1.60 as compensation and extending the 30-year concession by one year in lieu of compensation.

The New Klang Valley Expressway was given RM27mil compensation for holding rates since 2005.