PLUS Highway concessions decision still undecided

KUALA LUMPUR (Nov 23): The decision concession agreement with PLUS Malaysia Bhd (PLUS) is still being discussed in the Cabinet, the Dewan Rakyat was told today.

In a news report by Free Malaysia Today, it was reported that the Prime Minister’s Office (PMO) said there would be no hike in toll rates on PLUS highways as the concessions would be extended for 20 years from 2038 to 2058.

Deputy Works Minister Eddin Syazlee Shith said no decision had been made yet, adding that Putrajaya would look at the agreements in detail as it involves “sensitive issues including toll rates”.

To recap, PLUS also said in January it was willing to review the concession agreements should the government want to take over its toll highways and the government is looking at implement an 18% reduction in toll charges on private vehicles plying PLUS-owned highways as early as Feb 1 this year.

“Implementation of the toll rate cut is subject to approval by PLUS shareholders. No payment will be made by the government to PLUS as a result of the toll rate reduction,” said the PMO. 

Khazanah Nasional Bhd and the Employees Provident Fund would remain as shareholders of PLUS.

“Although both parties needed to review revenue from tolls, it should not burden the government and the people,” said Eddin in a reply to Padang Terap MP Mahdzir Khalid who asked for updates on discussions with PLUS.

Meanwhile, the report also said that the Seremban Middle Ring Road would be stalled again as the cost to build the highway was too high.

Eddin said that while the ring road was to reduce traffic, the government had cancelled the project under the 11th Malaysia Plan.

Nevertheless, the report said the government would review the project under the 12th Malaysia Plan, he told Cha Kee Chin (PH-Rasah), who asked about the latest plans for the highway and whether it would resume after Phase 3B (Part 1) was completed a few years ago.

The report added that Eddin said Phase 3B was expected to cost RM1.5 billion “and if this is compared to other projects, the government feels there are other priorities at the moment”.

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