KINGSTON, Jamaica—Transport Minister Daryl Vaz says the recently announced toll rate adjustments is a result of a legally binding concession agreement entered into between the former People’s National Party (PNP) administration and private concessionaires.

Vaz in a statement on Thursday said he acknowledges the concerns expressed by motorists regarding the recently announced toll rate adjustments.

“Once again this development concerning the toll rates is yet another example of the former PNP administration entering into a less than favourable deal which does not yield any tangible advantages for the Jamaican populace. What is unfortunate is that the agreement they entered into binds current and future Governments to the unhelpful terms contained in the agreement,” he said.

“This is not dissimilar to the situation Jamaicans have faced concerning the Jamaica Public Service (JPS) licence which was negotiated by the former PNP-administration and has burdened our people,” Vaz added.

Motorists travelling the full length of the Highway 2000 North-South Link could soon pay $5,220 for a round trip between Caymanas and Ocho Rios under proposed new toll rates published by the Government on Thursday.

READ: North-South Highway round trip could rise to $5,220

The Ministry of Energy, Transport and Telecommunications is proposing a capped toll of $2,610 each way for Class 1 vehicles, up $115, or approximately 4.6 per cent, from the $2,495 rate introduced last year.

Operators of Class 2 vehicles would pay $5,220 one way, while the proposed toll for Class 3 vehicles, including larger trucks, is $7,830. That would push the round-trip toll for a Class 3 vehicle to $15,660.

Motorcycles and other vehicles classified as Class 4 would pay $1,305 each way between Caymanas and Ocho Rios.

The proposed Class 1 tolls for shorter sections include $2,280 between Angels and Ocho Rios, $1,575 between Linstead and Ocho Rios and $945 between Unity Valley and Ocho Rios. The proposed rate between Lydford and Ocho Rios is $540.

“The Government is moving to have discussions towards arriving at a more favourable and affordable toll cost for Jamaicans. However, the binding agreement enter by the former administration has put us into a position where the concessionaire has to agree to whatever we suggest in order for it to be implemented,” Vaz said.

The transport ministry said an agreement entered into by the former administration established a contractual formula for the annual review of toll rates. It noted that the formula is based primarily on two objective factors, the United States Consumer Price Index (US CPI) and the Jamaica/United States exchange rate.

It said under the agreement, changes in either or both of these factors automatically affect the toll rates in accordance with the contractual provisions.

“For the Highway 2000 East-West corridor, the Concession Agreement was signed in November 2001 for a 35-year period. Similarly, the Concession Agreement for the North-South Highway (Caymanas to Ocho Rios) was executed in June 2012 under a 50-year Build-Finance-Operate-Transfer (BFOT) arrangement. Both agreements contain substantially similar toll adjustment mechanisms based on the US CPI and the Jamaica/United States exchange rate,” the ministry said.

The transport ministry said while the government is obligated to honour these legally binding contractual arrangements, it has sought, wherever possible, to secure more favourable outcomes for the Jamaican public.

“This was demonstrated during the negotiations for the Phase 1C (May Pen to Williamsfield) Concession Agreement, which was signed on October 23, 2025. Although the operator exercised its contractual Right of First Refusal arising from the original concession framework, the Government successfully negotiated a reduction in the maximum toll cap that can be applied under the adjustment formula. This means that future toll increases on Phase 1C will be lower than they otherwise would have been, providing meaningful savings to motorists over the life of the concession,” the ministry said.

The transport ministry said the government also negotiated a significantly improved revenue-sharing arrangement for Phase 1C. It said under the new agreement, where traffic volumes exceed projections by 8 per cent or more, additional revenues will be shared with the Government.

According to the ministry this replaces previous arrangements that were more complex, required significantly higher thresholds, and did not generate meaningful financial benefits for the people of Jamaica.