I applaud the decision taken by the Works Minister S Samy Vellu to raise the toll for the Penang Bridge. I believe that it is long overdue for the federal government to raise the toll rate.

The federal government should not keep subsidising bridge users by compensating the concessionaire for "losses" incurred while running the bridge operations. My agreement is on the transfer of "financial burden" of the government to the public so that the Federal Government can use the money for other development projects.

However, one puzzle that I have not been able to solve concerning Malaysia's public goods is the way privatization projects are handled.

First, a contract is awarded to a concessionaire. The award is based on various lobbying efforts done by the potential concessionaire.

Millions might have been spent, thousands of golf holes explored (locally and abroad for entertainment), and many expensive items changed hands. All is done solely to get the potential concession awarded to the investing company.

Second, the construction project is awarded to within the circle of the concessionaire. To please political masters, sub-contractors and suppliers are appointed, generating some political funds. Each layer at least, from the main contractor to the sub-sub-sub contractors, would be able to make reasonable construction profits.

Third, the project begins business operations. The concessionaire does not worry much whether the business operations make profits or losses. To the owner, profits have been recognised and realised during the construction.

If the toll collections do not meet the projected figures, no worries. Uncle Sam(y) will come to the rescue. The company's bank accounts will be reloaded; the way the company's office boy reloads his pre-paid handphone.

Worst case, if the company continues to go down in the red, it is sold back to the government. We can expect that one day, the Seremban Port Dickson Highway, Kerinchi Link, and Linkedua will be bought back by the government.

I really wonder how concessionaire agreements are discussed between the government and the concessionaire. Who offers to top up for any revenue shortfalls? Did the concessionaire ask for it, or were they offered without having to ask?

I strongly believe that had the government opened up for competitive bidding, there might have been companies who will not ask for compensation and still deliver good business. I would not be surprised if the good people in Air Asia can offer less than RM1 for various open toll collections in Kuala Lumpur.

Is it possible that for each concession project, the amount compensated by the government over the concession period will exceed the construction cost itself?

May I ask the government to give me a privatised public toilet project in Kuala Lumpur, and compensate me if I cannot meet my projected revenue?