Works Ministry evaluates proposals to restructure intra-city highways

KUALA LUMPUR: The Works Ministry is assessing proposals from highway concessionaires on possible restructuring of intra-city highways without burdening the users.

Works Minister Datuk Seri Fadillah Yusof said it was discussing with the Ministry of Finance (MoF) on the way forward in managing the country’s existing and new highways.

Once finalised, the proposals would be submitted to the Cabinet for approval, Fadillah said at a session with the media here yesterday.

“Plus is under the MoF. The Works Ministry looks after other highways especially intra-city highways,” Fadillah said when asked about the proposal on toll restructuring involving Plus Malaysia Bhd.

He added that the ministry had received proposals from some highway companies on “similar concept but better proposals than Plus’.”

Fadillah said the proposals included from Gamuda Bhd and Projek Lintasan Kota Holdings Sdn Bhd (Prolintas).

Gamuda has either majority or significant stakes in four intra-city highways namely Lebuhraya Damansara-Puchong, Kesas, Sprint and Smart.

Prolintas, which is owned by the country’s largest fund manager Permodalan Nasional Bhd, owns and operates several highways such as Ampang-Kuala Lumpur Elevated Highway, Guthrie Corridor Expressway and Damansara-Shah Alam Elevated Highway.

Fadillah said taking over highways and terminating toll rates would pose a financial burden on the government and the ministry’s Public Works Department particularly, which was responsible for maintaining federal roads.

One possible solution is to offer intra-city highway concessionaires a fixed rate and an extension to the concession period in return for not raising toll rates stipulated in the concession agreements.

This will avoid the government paying compensation to the concessionaires for not raising toll rates.

Fadillah also provided an update on some major road and highway projects such as the 306.4km Central Spine Road (CSR) and Pan Borneo Highway.

The CSR, which links Bentong in Pahang to Kuala Krai in Kelantan, has seen 66.53km completed, with 106.77km under construction.

The ministry is in the process of tendering out packages for 49.85km, while another 75.05km is under planning and the remaining 8.2km is yet to be approved.

The CSR involves a total cost of RM7.5 billion and out of the budget, RM7.3 billion has been approved.

For the RM27 billion Pan Borneo Highway, Fadillah said 62 per cent of works in Sarawak had been completed involving 786.41km and RM16.12 billion from 11 packages of works.

The Sabah portion saw a completion rate of 49 per cent involving 706km and RM7.49 billion from 16 of the 35 work packages.

Source: NST