KUALA LUMPUR: The government may have to fork out more than RM1 billion in compensation to highway concessionaires if it decides not to increase toll rates this year.
Works Minister Datuk Seri Fadhillah Yusof said the RM500 million set aside by the government may not be sufficient due to the increased cost incurred caused by the postponement of the toll rate review.
"As far as the toll rate is concerned, it is overdue as it was supposed to be (done) in January. Some of the highway concessionaires that are due for toll rate review had agreed to have their rates maintained, but with conditions such as extending the agreement should we decide not to raise the toll rates or pay compensation.
"This in the future, will pose a burden to the users (due to the extended agreement). If we decide not to increase the rates, we have to find out how it will affect the people and how we can mitigate the impact on them.
“We have also to look at the companies that have to service loans and maintain the roads.
“For the time being, there is no (toll rate) raise, wait for it (the announcement). We are still negotiating with the highway companies," he said, noting that the toll rates of several concessionaires including Plus Malaysia Bhd and intercity highways were due for increment.
He said the government has not decided on the toll hike yet as it is still studying the agreements and looking at various aspects including the high cost of living, government’s financial capability, and highway traffic volume, among others.