KUCHING: Two toll concessionaires which are facing the risk of bankruptcy have sought help from the Federal government, a minister revealed today.
Works Minister Datuk Seri Fadillah Yusof said the both the concessionaires have applied for the government to take over the management of their respective companies.
Fadillah also revealed that another concessionaire was in the midst of restructuring its company to avoid facing the same problem.
"The government had to intervene to avoid problems at the routes operated by these concessionaires.
"At the moment, only five highway routes are able to generate profit," he said after handing over annual grant presentation to non-governmental organisations in Jalan Astana here yesterday.
Fadillah, however, did not identify the toll concessionaires which were facing financial constraint.
The government, the Petra Jaya Member of Parliament said, was in the process of studying all toll systems in the country.
"At the moment, there are four types of concession agreements including the most current ones which is the fourth generation agreement.
"The first generation agreement did not side the with the government since we were new to the methods and the terms when the document was signed and formulated.
"The (first generation) agreement was more in favour to concession companies more," he said.
The next three generations of agreement, said Fadillah, had been improved with the inclusion of a provision on the abolishment of an automatic increase in toll rates annually.