Concession Companies Need To Understand Toll Hike Delay To Lighten People’s Burden - Nanta

KUALA LUMPUR, July 24 (Bernama) -- The decision to delay the increase in toll rates on several highways needs to be understood by concession companies in the context of the MADANI government's noble efforts to lighten the burden of the people, especially highway users among the B40.

Works Minister Datuk Seri Alexander Nanta Linggi said that although the move would affect the cash flow of highway concession companies, he believed that the government's real objective would be understood by all parties involved.

“In terms of the business model, they do not like it (delay in increase) … from the beginning when making the business proposal, cash flow has been taken into account.

“We understand, and this is undoubtedly disrupting their cash flow but I hope they understand why the government made this decision to ease the burden of road users, especially the B40 group,” he said here today.

Nanta said this at a press conference after the handover of the Letter of Acceptance (SST) for the Blackspot and Federal Road Maintenance Programme in Peninsular Malaysia at the Works Ministry. The event was also attended by Works Ministry deputy secretary-general (Policy and Development) Datuk Mohd Sakeri Abdul Kadir.

He also expressed his appreciation to the concession companies who cooperated and understood the government’s decision to help the people in the current economic situation.

He said the government also acknowledged that the concession companies had responsibilities based on the agreements signed, and any breach of the agreement had to be seen from the perspective of their interests.

“When there is a breach of this agreement, we have to understand it from their perspective because they borrowed their investment money and so on, and it needs to be repaid.

“They have a business model, return on investment (ROI), so we have to understand that is their big responsibility. So whatever is good for everyone, then all parties should work together," he explained.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim announced the government's decision to postpone the increase in toll rates for 10 highways, including the Senai-Desaru Expressway (SDE), East Coast Expressway 2 (LPT2), South Klang Valley Expressway (SKVE), Butterworth Outer Ring Expressway (LLB) and KL-Putrajaya Expressway (MEX).

Regarding the 'blackspot' programme implemented by the ministry, Nanta said it has succeeded in reducing the accident rate by between 25 to 60 per cent, and that RM37 million has been allocated this year to repair and implement mitigation actions in blackspot areas nationwide involving two phases.

“This will not only help save lives and property but also improve overall road safety,” he said.

He also said that of the RM37 million allocated, RM27.1 million had been spent on 76 repair works in 11 states, namely Kedah, Negeri Sembilan, Kelantan, Perak, Penang, Selangor, Terengganu, Johor, Perlis, Melaka and Pahang.

Nanta added that the installation of street lights under the blackspot programme did not involve the entire route but only focused on areas identified as high-risk accident locations.

-- BERNAMA