NHBF urges compensation for toll concessionaires

03 Apr 2024 CW Team

The National Highway Builders Federation (NHBF) has fervently called for compensation to be extended to concessionaires in light of the deferred toll revision. NHBF, a significant voice in the realm of highway infrastructure, emphasised the adverse impact the postponement has inflicted upon concessionaires who had prepared for the anticipated revision.

The demand for compensation arises from the fact that concessionaires had structured their financial projections and operational strategies based on the expectation of revised toll rates. However, the postponement of the revision has thrown a wrench into their plans, resulting in financial repercussions.

The NHBF highlighted that concessionaires have made substantial investments in highway projects, including maintenance and upgradation activities, anticipating a corresponding return on their investments. The delayed toll revision has disrupted this equilibrium, posing financial challenges for the concessionaires.

Moreover, the NHBF underscored the need for a fair and equitable resolution to mitigate the losses incurred by concessionaires due to circumstances beyond their control. They argue that compensation would not only alleviate the immediate financial strain but also foster confidence among stakeholders in the highway infrastructure sector.

The call for compensation by NHBF underscores the complexities involved in managing infrastructure projects and the importance of ensuring a conducive environment for private sector participation. It also sheds light on the ripple effects of policy decisions on various stakeholders within the infrastructure ecosystem.

In essence, NHBF's demand for compensation reflects the pressing need to address the challenges faced by concessionaires and uphold the principles of fairness and accountability in the management of infrastructure projects.

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