Govt will pay compensation to PLUS for Federal Highway toll abolishment

The Sun

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KAJANG: The government will pay compensation to PLUS Malaysia Berhad (PLUS) – the concessionaire for the Federal Highway – for abolishing toll collections at the highway beginning next year.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said that the compensation would be paid for the remaining 20 years of the contract, which was supposed to end in 2038.

"The agreement for the concession is up to 2038. So when the tolls are abolished, it means that the government will pay compensation for the abolishment. The compensation is still subject to the existing agreement that both parties (government and PLUS) have signed," he told reporters, here, today.

"The bottom line is that users will no longer need to pay tolls at this highway beginning Jan 1 next year."

Ahmad Zahid's statement, however, is in contrast to Finance Minister II Datuk Seri Johari Abdul Ghani, who had on Friday said the government would not compensate in cash for abolishing four of PLUS' toll booths, and instead look to extend the concession tenure of other tolls operated by the company.

Prime Minister Datuk Seri Najib Abdul Razak had, during the Budget 2018 tabling, announced that collections at the Batu Tiga and Sungai Rasau toll plazas on Federal Highway would be abolished, alongside two others in Johor and Kedah.

Following confusion, PLUS released a statement clarifying that the concession for the Federal Highway was supposed to end in 2038, and not 2018 as rumoured, meaning it was 20 years ahead of schedule.