KUALA LUMPUR: Toll rates for the West Ipoh Span Expressway (WISE) project, linking Gopeng to Kuala Kangsar, expected to be completed in 2028, will not be arbitrarily increased, Datuk Seri Alexander Nanta Linggi.
The Works Minister said that the government had finalised the estimated construction cost of the expressway based on the work design and scope provided by qualified professional consultants appointed by the concessionaire.
"The finalised estimated cost between the government and the concessionaire is based on current market rates to ensure a reasonable valuation.
He said the cost took toll rates to be imposed into consideration.
“So, any changes to the scope of work involving increased construction costs must be borne entirely by the company as stipulated in the concession agreement," he said during a question-and-answer session in the Dewan Negara on Thursday (Dec 19).
He was responding to a question from Senator Datuk Shamsuddin Abd Ghaffar on who controlled the highway's construction costs and how to ensure that the toll rates would not burden users.
According to Nanta, toll rates for a highway are determined based on the concessionaire's proposed cash flow, which considers construction costs, traffic projections, operating costs, and maintenance.
"All of these matters have been scrutinised and recommended by the Public-Private Partnership Unit (UKAS) before being brought to the Cabinet for consideration," he said.
Nanta was previously reported as saying that the expressway, costing about RM6.2 billion, provided an alternative route for users of the Menora Tunnel, which was often congested due to high numbers of heavy vehicles.
The private finance initiative project involves a 60.88km tolled expressway from Kuala Kangsar to Gopeng via Siputeh and Batu Gajah.
The toll rate set is 23 sen per km for a concession period of 55 years, including a four-year construction period. - Bernama
