The works ministry also denied that the toll payments would be part of an extension of the concession period.
The claims are untrue, the ministry said in a statement today. The highway concessionaires cannot arbitrarily add on new debts in the new agreement involving the restructuring of the four concessionaire companies.
The ministry said the restructuring would allow the government to save on compensation costs.
If the restructuring is not allowed, then the toll rates has to be increased, which would then cause a chain reaction of the cost of goods.
Prime Minister Ismail Sabri Yaakob, announcing the restructuring on April 4, had said the government would maintain toll rates on the four highways until the company’s concession period ended.
The four highway concession companies are those behind the Kesas expressway in Shah Alam, SMART tunnel, SPRINT highway, and the Damasara-Puchong Highway or LDP.
The ministry also denied that there were fixed cost for the construction and maintenance of the highways.
“This is a false and misleading statement. The government has never paid or provided allocations in the form of fixed costs for the construction or maintenance of the highways.
“Construction was done using funds obtained by the concession company through loans or the issuance of Sukuk which must be repaid through toll collection while the operational costs and maintenance is covered through toll collection,” it said.
The statement said an extension of the concession period was given only as an indicator to assure Sukuk holders that their investment would be repaid.
“The earliest expiry date is six more years which is 2028 for Kesas, another eight years to 2030 for LDP, another 12 years to 2034 for SPRINT and another 20 years which is 2042 for SMART. This is enshrined in the existing Concession Agreement. In this structuring, the extension given is not exclusive (to any of the four concession companies),” it said.
With the restructuring, the toll rate would remain the same, while the government could end the concession period at any time, subject to its financial position, to avoid an increase in the price of goods due to a rise in toll rate.
The statement also dealt with questions raised about the four shareholders of Amanat Lebuhraya Rakyat Berhad (ALR), which took over the highway assets worth over RM5 billion, with a mere capital of RM5,000.
“The role of the ALR is solely as the custodian of the four highways,” the ministry said. “Prospective Sukuk investors (or Sukuk subscribers) need confidence to invest (for returns) and as such, the ALR consists of corporate figures who are not affiliated with any political party.
“This allows ALR with a capital of only RM5,000 to act as ‘guardian’ of the four highways,” the statement said.
“In addition, since the original shareholders are no more and since ALR is non-profit, no more dividend payment is required to be made, which thus allows the toll rate to be maintained at the existing rate,” it added.