By P PREM KUMAR & ALIFAH ZAINUDDIN / Pic By MUHD AMIN NAHARUL
The federal government has no plans to review and shorten the 50-year concession period awarded to the West Coast Expressway (WCE) operator.
Deputy Works Minister Mohd Anuar Mohd Tahir (picture) said the concession period, which began on Jan 2, 2013, is considered reasonable as shortening the concession period would lead to an increase in the toll rate.
“The current decision to maintain the WCE concession at 50 years is reasonable although it is long. We can shorten the term but will the rakyat be able to pay for the higher toll (rate)?” he told the Dewan Rakyat yesterday.
Mohd Anuar was responding to a question by Sungai Besar MP Muslimin Yahaya who asked if the government would consider reviewing the WCE’s concession period, stating that the 50-year period is generally deemed as too long.
Mohd Anuar said the decision to maintain the period as agreed in the contract is not only made by the ministry but also by the Finance Ministry and the Attorney General’s Chambers.
“The parties involved in this deal have considered several factors. Among the main points of interest are reasonable toll rates and returns for investors,” he explained.
The construction of the 313km highway, which stretches from Banting in Selangor to Taiping in Perak, is 60% complete and will open in stages starting next year. The entire project is expected to be completed by 2022, two years later than the initial deadline of April 2020.
The cost of construction for the entire WCE project is RM6.54 billion, covering the private sector’s package of RM5.04 billion and RM1.5 billion on the Public Works Department Malaysia’s part.
Mohd Anuar said the toll rate along the WCE will be benchmarked against the 13.96 sen per km rate charged on PLUS Malaysia Bhd’s North-South Expressway to keep the WCE toll rate affordable.
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