- Following the directive set under Law No. 38 of 2004 on Roads, as most recently amended by Law No. 2 of 2022, which mandates the evaluation and adjustment of toll-road tariffs every two years, the Minister of Public Works and Public Housing (“Minister”) has decided to issue a set of guidelines on the evaluation and adjustment of the aforementioned toll-road tariffs (“Guidelines”) through the issuance of Circular No. 21/SE/M/2024 (“Circular 21/2024”), which has been in force since 15 October 2024.
- As briefly mentioned above, the Guidelines will now serve as a reference during the evaluation and adjustment of toll-road tariffs. In this regard, the Guidelines broadly cover several aspects that specifically relate to said evaluations and adjustments, including: 1) Fulfilment of minimum service standards during the adjustment of toll-road tariffs; 2) Value of inflation; 3) Adjustment of regular toll-road tariffs (i.e. specific provisions and applicable procedures); and 4) Adjustment of non-regular toll-road tariffs (i.e. specific provisions and applicable procedures).
- In terms of the calculation of the above-mentioned inflation values, Circular 21/2024 states that said values may be calculated through the use of either of the two following methods: 1) Inflation values in the longest areas traveled by the relevant toll roads; and 2) Weighted calculations of inflation values in each specific area traversed by toll roads in line with the length of the relevant roads. When using either of these calculation methods, the inflation values used should be the lowest values from the calculation results.
- In terms of the adjustment of regular toll-road tariffs, Circular 21/2024 mandates that business actors operating within the toll-road sector (“Business Actors”) should submit their tariff adjustment proposals to the Minister at least 90 calendar days prior to the official toll-road tariff adjustment date. Meanwhile, in terms of non-regular toll roads, additional tariff evaluations and adjustments may be completed outside the normal two-yearly evaluations and adjustments under the following conditions: 1) In order to fulfill traffic service requirements in certain regions of toll-road network systems; 2) In order to address additional scopes beyond the relevant business plans that affect investment feasibility; and/or 3) In order to enforce central government policies that affect investment feasibility.
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