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What could be the base toll rate

What could be the base toll rate? The planned toll rates for CKE are not known (or even not calculated yet), but if planned toll  packages for the Southern expressway are any indication, then we can assume it to be between Rs. 3.00 to 5.00 per km. (The toll package planned for the Southern Expressway takes a minimum charge of Rs. 3.00 per kilometre.) According to Ministry of Highways, the new toll system would be introduced to cover the highway construction expenses.

 

There is no doubt that the toll will help maintain the expressway. The toll will not only facilitate the self financing of the cable duct expressway in the long run but also help reduce the number of vehicles on the road thereby clearing way for high speed travel.

 

What is important to understand is whether a Rs. 5.00 per/km rate will justify the Return on Investment (ROI) of the CKE. Despite Sri Lanka’s claim that initial handler, the Consortium of Malaysian Firms (CML-MTD) was slow in construction and cable trunking as a result the project had to be taken over, it is understood that the Malaysians simply pulled out since the revenue projections from toll earnings were not encouraging.

 

However, as it stands now, the government will be operating the CKE on its own and will only implement a partial toll and that is good news. But, on the other hand, low revenue from a partial toll may not be sufficient for maintaining the prescribed standards for the expressway to be viable in the long run. Unless the CKE is maintained in keeping with international standards, then it will end up yet another highway.

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