Samy: Unwise to extend concession period
Malaysiakini.com
Dec 18, 2006

The government does not want toll collection to be a permanent feature in Malaysia, said Works Minister S Samy Vellu today.

In view of this, he said the government could not spread the burden of imposing higher toll rates over a much longer toll concession period.

He said the government had to put a limit on the extension of the toll concession period at between 30 and 35 years in order to avoid motorists from paying toll for life.

"If we allow the concession period to be extended to 60 years just to enable motorists to pay much lower toll rates now, it would result in motorists paying toll for life," he told reporters in Caracas, Venezuela.

Samy Vellu is part of a delegation led by Prime Minister Abdullah Ahmad Badawi, who is on a three-day official visit to Venezuela beginning Sunday.

According to Bernama, he was asked to comment on the possibility of imposing lower toll charges with the extension of a much longer concession period following the recent announcement of toll hike of between 30 sen and RM1 for five highways starting Jan 1 next year.

The highways are the Lebuhraya Damansara-Puchong (LDP), Shah Alam Highway, Cheras-Kajang Highway, KL-Karak Highway and the Guthrie Corridor Expressway.

Cannot interfere

Samy Vellu said the government had to pay the toll concessionaires compensation in the form of cash and concession extensions as an option not to allow them to charge motorists higher toll rates according to the concession agreements.

However, extending the concession period without any limit would not serve the interest of motorists as they would be paying toll for the rest of their life, he said.

He said motorists were no longer paying toll for the Jalan Kuching, Jalan Pahang, Jalan Cheras and Johor Baru-Senai highway when their concession period ended.

He also said the government could not interfere with the concessionaire agreements with banks over the repayment period of 15 years for the loans to build the highways.

"We simply cannot ask banks to extend the repayment period in order to avoid an increase in toll charges as it involves syndicated loans and it will affect the country's banking industry if loans are not paid within the stipulated time in the agreement," he said.

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