I WISH to your report, "Ministry looks  for win-win situation in toll hike" (NST,Oct 6) and would like to commend the works minister for his desire to look at the toll rate increase with concern.

However, from what I have read and observed, when the government sought the help of the private sector to construct and develop highways,The business model for this concept had been based on an "on-going business concern"With profit being utmost on the minds of the business sector. I suggest that, if the minister is serious and sincere in looking for a win-win situation, we should have a mindset change on contracts that have bee signed with concessionaires.

The following must be considered:

Existing contracts with all concessionaires must be viewed as flawed. The toll rates agreed with concessionaires are based on notion that the companies which built the expressways, on behalf of the government, will recover their investments and expenses due to loans and finance charge within eight to 12 years.

These companies are also expected to make a profit out of this venture.

After the tolls have been collected to cover the investments, loans and interests of the concessionaires in the stipulated periods, the government should not allow concessionaires to increase toll rates from the date of completion of the date of completion of the loans.

As I have stated, the goal of recovering costs and making a reasonable profit would have been achieved by then.

The contracts of these companies should be reviewed based on this situation.

As a layman, I cannot see why when the investment and financing costs of the expressways have bee recovered, the government allowed these concessionaires to continue raising the toll rates.

The only reason the government does that is that it has mistakenly allowed the concessionaires to treat these  highways as their profit centres, when the government should realize that building roads is just a small part of its social responsibilities.

There should be tow phases of the contract; the first one to allow the private sector to recover costs from the construction with reasonable profits, and, the second phase, a contract to appoint them as maintenance contractors.