No reason for government to approve toll hikes by 10% for 7 highway concessionaires from 1.1.2008, when they have already earned RM 2.36 billion in toll collections from the public without including government compensation paid
______________
Press Statement
by Lim Guan Eng
__________________
(Petaling Jaya,
Sunday):
There is no reason for Works
Minister Datuk S. Samy Vellu
to submit a working paper to
Cabinet next week seeking a
10% toll hike for 7 highway
concessionaires from 1.1.2008
when these companies have
already earned RM 2.36
billion in toll collections
from the public alone without
counting government
compensation paid to defer
toll hikes.
Samy Vellu said the next toll
increase scheduled for Jan 1,
2008 involved 8
concessionaires - Ampang-Kuala
Lumpur Elevated Highway,
North-South Expressway,
Elite, Kulim-Butterworth
highway, Second Link in Johor,
Seremban-Port Dickson
Highway, North Klang Straits
Expressway and the Penang
Bridge. An analysis of toll
collections against the
construction and maintenance
of 7 highway concessionaires
(see below) shows huge
profits earned that does not
justify any toll increase
next year.
These 7 concessionaires are
profitable, with toll
collections of RM 20.22
billion as compared to the
total cost of RM 17.86
billion comprising of RM
6.744 billion in maintenance
and RM 17.864 in
construction. In other words
the 7 concessionaires have
already earned profits of RM
2.36 billion by 2006 and
still have nearly 30 years of
profits to be earned.
And this is not all because
the RM 2.36 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 7 concessionaires has
already made RM 2.36 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 a one
big company. To ensure that
national interests are
protected, Badawi should
ensure that if there is no
10% hike in toll rates, there
should be no corresponding
compensation payment to the
highway companies.
Total maintenance and
construction cost for 7
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
|
1.70bsince 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 |
TOTAL: |
20.22billion |
|
6.744billion |
11.12b |
17.864b |
(28/10/2007)
* Lim Guan
Eng,
Secretary-General of DAP |