Confusion over no-toll-hike announcement

Government leaders appeared to give conflicting responses today to the prime minister’s no-toll-hike announcement as questions arose over whether Putrajaya would honour its concession contract with PLUS Expressways Bhd and compensate the operator.

Deputy Finance Minister Datuk Donald Lim told reporters in Parliament this evening that this was not necessary as PLUS, which operates the lucrative North-South Expressway, “has enough profits”.

Pua previously highlighted that PLUS’s concession allowed it to be compensated in lieu to toll rate hikes.


Deputy Minister in the Prime Minister’s Department Datuk SK Devamany, however, issued a conflicting statement and declared that the government would have to compensate the toll-road operator in order to honour its agreement.

“We have to recognise and respect agreements,” he said.

When tabling Budget 2011 this evening, Prime Minister Datuk Seri Najib Razak announced that toll rates on four highways owned by PLUS would not be raised for the next five years, effective immediately.

“The government is very concerned with the rising transport cost borne by the rakyat,” he said, to resounding thumps on the table by MPs.

Najib, however, did not offer additional details on the matter.

Yesterday, DAP MP Tony Pua had pointed that the concession agreement with PLUS allowed the operator to raise toll rates by 10 per cent every three years.

Failing which, the agreement, which expires in 2038, states that the government would have to compensate the firm.

Pua had also pointed out that government compensation to PLUS last year was RM850 million.