Most Read
Most Commented
Read more like this
mk-logo
From Our Readers

Behind Monday's front pages bringing us good news of the rain clearing the haze, lies the somewhat more depressing warning made by Works Minister S Samy Vellu for us to get ready for more toll price increases.

Samy contends that concessionaires are entitled to raise toll prices at regular intervals and the government has to pay them compensation if they are not allowed to do so. He further claims that the government, in the past, has been paying this 'subsidy' to the tune of millions and is now not prepared to further do so.

As I understand it, to determine toll rates and its increases, the costs such as construction, maintenance and financing a highway concession has to be balanced by the collection of toll based on traffic projections during the concession period.

When Plus, and the other concessionaires for that matter, made their proposals which were subsequently accepted by the government, one presumes that a fair assessment had been carried out to estimate all these mentioned costs and traffic volume.

It follows, therefore, that toll rates increases have to be justified by the volume of traffic meeting or not meeting the projections for the particular period before increase. Simply put, if traffic does not meet projections substantially, the concessionaire loses.

But on the other hand, if traffic is much more than expected, they make money faster and therefore the government should be looking at a lesser or no increase in toll rates and also shortening the concession period. I do not know whether such a provision is made in the agreement but we all know what happens when a concession company flops.

We should, therefore, view the success story of Plus with some consternation as they can make millions, get listed, increase their toll rates and even have their concession extended. After all, when the North-South highway was privatised, we were made to believe that it was to relieve the government of the burden of building this essential infrastructure.

Surely it was not meant to be a money-spinner for the government or others at our, the rakyat's, expense.

Pak Lah must keep to his word on being transparent (just like in the AP issue) and make public the terms and agreement of all concessions especially Plus'. Let the public appreciate for themselves how well this government is taking care of our interests.


Please join the Malaysiakini WhatsApp Channel to get the latest news and views that matter.

ADS