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Government Should Not Continue To Pay High Compensation To Toll Concession Holders

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KUALA LUMPUR – The government feels it should not continue to pay very high compensation to highway concession companies to keep toll rates from rising, said Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar.

He said the government had to pay RM510 million in compensation for the January to October period this year following the decision to postpone toll rate increase which should have been implemented in January.

Speaking on TV3’s programme ‘Soal Jawab’ last night, he said the amount was higher compared to the RM403 million compensation paid to concession companies last year.

As such we allowed concession companies to raise toll rates,” he said, adding that the hike was carried out according to the concession agreements signed earlier.

He said the increase only covered highways in the urban areas with a maximum rate increase of RM1.

According to Abdul Wahid, the measure was to enable the government to spend its financial resources for the people such as providing facilities like schools and clinics.


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