CEO Morning Brief

Govt Agrees to Restructure Four Prolintas Highway Concession Firms to Reduce Toll Rates, Says PM

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Publish date: Fri, 14 Oct 2022, 08:34 AM
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TheEdge CEO Morning Brief

SHAH ALAM (Oct 13): The Government has agreed with the proposal to restructure four highway toll concession companies under Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) to reduce the toll rates of the highways involved, said caretaker Prime Minister Datuk Seri Ismail Sabri Yaakob.

The PM said the reduction of toll rates involves the Ampang-Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Lebuhraya Kemuning-Shah Alam (LKSA) and Kajang Dispersal Link Expressway (SILK), effective 12.01am on Oct 20.

Meanwhile, the toll reduction for Lebuhraya Kajang-Seremban (Lekas) and the Sungai Besi Expressway (Besraya) under IJM Corp Bhd will come into effect on Jan 1, 2023.

"All improvement works which I have announced just now took into consideration the restructuring of toll rates, with the concession agreements being finalised.

"Through the latest restructuring, the Government will save RM8.8 billion in estimated compensation, which should be paid to the concession companies involved. Highway users will enjoy the lower rates that lighten their burden.

Ismail Sabri was speaking at the opening of the Damansara-Shah Alam Elevated Expressway (DASH) here on Thursday (Oct 13).

Apart from that, the PM said in an effort to accommodate the high traffic and deal with the problem of traffic congestion on the Kuala Lumpur-Karak Expressway from the Gombak Plaza Toll to the Bentong Plaza Toll, the Government will build an additional lane and a new tunnel in Genting Sempah.

He said flood mitigation works on Phase 1 of the East Coast Expressway will also be carried out, as floods often occur on the highway.

Commenting on the opening of the DASH highway, the PM said the Government fully supports the efforts and continued commitment of concessionaires to boosting the development of the country's infrastructure, thus proving the effectiveness of the public-private partnership project between Prolintas and the Government.

He said the 20.1km highway from Puncak Perdana to Penchala (with a total length of 55.4 km including interchanges) is expected to stimulate the development and growth of economic areas, such as new housing and commercial areas, along the highway, including Puncak Alam, Elmina and Kwasa Damansara.

"The development of the highway industry plays a big role in the effort to develop the country, especially in the economic and infrastructure aspects, with the existence of new development areas along the highway route.

"The DASH highway project is one of 53 high-impact projects in the Economic Transformation Programme, which aims to create job opportunities, generate business spillovers, and stimulate many more viable economic activities," he said.

Ismail Sabri said via the construction of the DASH highway, 12,000 job opportunities were created, involving management, engineering, technicals, frontline assistants and contract workers.

He said the highway, which began construction in August 2016 and was completed on Sept 30, is able to reduce traffic congestion in several strategic locations, such as along Persiaran Mokthar Dahari, Jalan Sungai Buloh and Persiaran Surian, by up to 40% during peak hours.

According to him, travel time is also expected to be reduced by 30 minutes during peak hours from the Puncak Perdana Interchange to the Penchala Interchange, compared to the existing route, which takes one hour and 30 minutes.

"The DASH highway is an alternative route for users on the west side of Shah Alam travelling to Kuala Lumpur, thereby reducing congestion and travel time, and dispersing traffic more effectively," he said.

In addition, he said, the construction of the DASH highway also applied elements of sustainability in line with the Sustainable Development Goals 2030, and met the criteria set under the Malaysian Green Highway Index, including the entire value chain of infrastructure development and taking environmental factors into account with a "gold" level rating.

In conjunction with the launch of the highway, the PM announced that usage of the highway is for free for one month from 12.01am on Oct 14.

Source: TheEdge - 14 Oct 2022

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