Saturday, July 2, 2022

New highway projects to be fully funded by concessionaires, says works minister

Fadillah Yusof says there will no longer be any financial assistance from the government.

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New highway projects, including three in the Klang Valley, will not receive any allocations from the government, says Works Minister Fadillah Yusof.

He said the cost of these projects and any risks involved would have to be fully borne by the concessionaires.

“There will no longer be any financial assistance from the government for new highways. In fact, no assistance for land, either. Previously, the land acquisition cost for highway construction was partly borne by the government.

“Now, there are no more soft loans. Everything will have to be shouldered by the concession companies interested in building the highways,” he said at an event in Petaling Jaya yesterday.

Media reports said the Petaling Jaya Traffic Dispersal Elevated Highway (PJD LINK), Putrajaya–Bangi Expressway (PBE) and Kuala Lumpur Northern Dispersal Expressway (KL-NODE) projects had obtained approval in principle from the government.

On April 4, Fadillah said the government welcomed private companies to take over concessionaires for the purpose of restructuring, to reduce the financial burden of the people and government.

Earlier that same day, Prime Minister Ismail Sabri Yaakob announced that the government had agreed with the restructuring of four Klang Valley highway concessionaires, namely Kesas Sdn Bhd (Kesas Expressway), Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd (SMART Tunnel), Sistem Penyuraian Trafik KL Barat Sdn Bhd (SPRINT Expressway) and Lingkaran Trans Kota Sdn Bhd (Damansara-Puchong Expressway or LDP).

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