RM 380 million windfalls for 9 toll concessionaires following the toll hike in 2008 is against national interests, principles of justice and sharing our hardships together when the 9 toll concessionaires already record billions of ringgit in annual profits
____________
Press Statement
by Lim Guan Eng
________________
(Petaling Jaya,
Friday):
The RM 380 million windfall
for 9 toll concessionaires
earned solely from the toll
hike next year in 2008
“stinks to high heaven” as it
is against national
interests, principles of
justice and sharing our
hardships together when the 9
toll concessionaires already
recording billions of ringgit
in annual profits. Works
Minister Datuk Seri S. Samy
Vellu said in Parliament on
22.11.2007 that the 9 highway
concessionaires are scheduled
to increase their respective
toll rates from 1.1.2008,
except Penang Bridge which
will increase its rate from
1.10.2008. The breakdown of
the RM 380 million
compensation to be paid to
nine highway concessionaires
is:
1.
Ampang-Hulu Klang Elevated
Highway – RM28 million
2. North South Expressway
(Central Link) – RM18 million
3. Seremban-Port Dickson
Highway – RM178 million
4. Kulim-Butterworth Highway
– RM10 million
5. Malaysia-Singapore Second
Link – RM6 million
6. Sprint Highway – RM34
million
7. North Klang Valley
Expressway Highway – RM9
million
8. Penang Bridge – RM22
million; and
9. Litrak, operator of the
Damansara Puchong Expressway
- RM75 million year to reduce
its toll rate of RM2.20 to
RM1.60
An
analysis of toll collections
against the construction and
maintenance of 8 of the
highway concessionaires (see
below) shows huge profits
earned that does not justify
any toll increase next year.
These 8 concessionaires are
profitable, with toll
collections of RM 21.19
billion as compared to the
total cost of RM 19.05
billion comprising of RM 6.85
billion in maintenance and RM
12.2 in construction. In
other words the 8
concessionaires have already
earned profits of RM 2.14
billion by 2006 and still
have nearly 30 years of
profits to be earned.
And this is not all because
the RM 2.14 billion profits
to date do not include the
government compensation paid
to these companies for
deferring toll hikes. No
estimate is available as to
the amount of compensation
paid by the government but it
must be substantial when Samy
announced in September 2006
that the government paid
compensation amounting to RM
38.5 billion to the highway
companies.
That is why any rejection of
the 10% hike in toll rates is
meaningless when the public
will still have to pay PLUS
in the form of government
compensation. Only when there
is no toll hike and no
government compensation made,
will the highway companies be
considered as contributing to
the interests of Malaysians
and real benefits enjoyed
from the rejection of toll
hike.
What is 10% toll hike when
these 8 concessionaires has
already made RM 2.14 billion
in profits and is expected to
make tens of billions of
ringgit more? PLUS which
comprise 85% of the highways
in Malaysia has earned even
more with RM 3.7 billion in
only 19 years without taking
into account the amount of
government compensation
received. As PLUS has a 50
year concession agreement, it
still has 31 years to earn
tens of billions of profits.
Why should the government
help these companies earn
more money by approving toll
hikes?
This will be test of resolve
for Prime Minister Datuk Seri
Abdullah Badawi whether he is
concerned about the plight of
tens of millions of ordinary
Malaysians who will be the
hardest hit by the toll hike
or more concerned about
padding the profits of
several companies. Allowing
toll hikes will only increase
transportation costs and
worsens inflation which has
seriously eroded the real
incomes and purchasing power
of ordinary Malaysians.
Why should the toll companies
earn increasing profits at
the time when Malaysians face
difficulty maintaining the
same standard of living and
making ends meet because of
inflation? The toll companies
should share the financial
burdens with ordinary
Malaysians in the national
interests by forgoing such
toll hikes next year. Badawi
should ensure that if there
is no 10% hike in toll rates,
there should also be no
corresponding compensation
payment to the highway
companies.
Total maintenance and construction cost for 8 concessionaires till year 2006
Highway concession period |
Total collected till 2006 (RM) |
Period
(year) |
Total
maintenance
cost (RM) |
Total construction
cost (RM) |
Total maintenance +
construction
cost (RM) |
North South (plus) / 50 years |
15.91b since 1988 |
19y |
6270m |
5.94b |
12.21b |
North-South-central link (elite) / 36 years |
1.05b since 1994 |
13y |
156m |
1.250b |
1.406b |
Penang bridges/ 25years |
1.70b since 1993 |
14y |
28m |
0.94b |
0.968b |
Second Link / 45years |
350m since 1993 |
14y |
140m |
1.03b |
1.17b |
Butterworth-Kulim/ 32years |
18m since 1994 |
13y |
104m |
0.26b |
0.364b |
Elevated Ampang-Kl/ 33years |
13m since 1996 |
11y |
22m |
1.12b |
1.142b |
New North Klang Strait Bypass/ 25years |
90m since 1995 |
12y |
24m |
0.58b |
0.604b |
LDP/ 33 years |
970m since 1996 |
11y |
110m |
1.08b |
1.19b |
TOTAL: |
21.19 billion |
|
6.854 billion |
12.2b |
19.054b |
(23/11/2007)
* Lim Guan
Eng,
Secretary-General of DAP |