West Ipoh Span Expressway Toll Rates Won't Increase Arbitrarily - Nanta

KUALA LUMPUR, Dec 19 (Bernama) -- Toll rates for the West Ipoh Span Expressway (WISE) project, linking Gopeng to Kuala Kangsar, which is expected to be completed in 2028, will not be arbitrarily increased, said Works Minister Datuk Seri Alexander Nanta Linggi.

He explained 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 through a Value Management Lab process.

"The finalised estimated cost between the government and the concessionaire is based on current market rates to ensure a reasonable valuation.

"In this context, it is included in the calculation of the toll rates to be imposed. 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 today.

He said this in response to a question from Senator Datuk Shamsuddin Abd Ghaffar, who wanted to know who controlled the highway's construction costs and the mechanism 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 WISE project, costing about RM6.2 billion, provided an alternative route for users of the Menora Tunnel, which often faced congestion due to the high number of heavy vehicles.

The private finance initiative project involves a 60.88 km 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