DAP's Petaling Jaya Utara MP Tony Pua wants the government to provide a detailed breakdown of the supposed costs to buy back 26 highway concessionaires.

NONE Pua (right) today said he has written to the Minister in the Prime Minister's Department Nor Mohamed Yakcop requesting for the breakdown. Earlier, Nor Mohamed told Parliament that the total cost to acquire the highways would be RM231 billion.

According to Pua, the Economy Planning Unit (EPU) was tasked to study and submit a report on the structuring of the toll concessions by July. The report is still not ready and will likely only be completed in December.

Nor Mohamed's "revelation", said Pua, was "essentially hinting that the effort to restructure the toll concessionaires in Malaysia will not happen".

Pua told reporters at Parliament today that Nor Mohamed had agreed to provide the details in writing.

"I hope that he will reply as soon as possible so that the interest of millions of users, who use tolled highways, are protected," said Pua.

The cost indicated by Nor Mohamed is grossly inflated, said Pua, saying that it was meant to fully compensate concessionaires for the loss of future profits. He said such a move would make the entire buyback exercise pointless.

"It just means that the burden of (paying) toll is shifted from the commuters to the tax-payers," said Pua.

Pua claims that the "real cost" of taking over the highways from the concessionaires will only be around RM25 billion.

The RM25 billion estimate, he said, was based on these factors:

1. The declassified highway concession contracts have revealed clearly under the expropriation terms of the highways that the government does not have to pay compensation for future profits, with the exception (being) the North-South Expressway (PLUS) and the Penang Bridge.

puchong toll protest 040207 ldp poster 2. The government does not need to buyback all highways but only those which are (clearly) making astronomical profits at the expense of daily commuters.

3. Litrak, the owner of LDP (Damansara-Puchong Highway) had for example, projected total profits of RM18.8 billion for the LDP concession, despite the cost of the highway, including interest, amounting to only RM1.327 billion.

Revenue is sufficient to recoup costs

The MP said that even after reducing the toll rates, within 10 years collected revenue would exceed the initial buyback costs.

Using the North-South Expressway as an example, Pua said that even with maintaining current toll rates it would take only seven years to recoup the RM15 billion cost to buy back the highway.

According to Pua, the EPU's quoted RM231 billion figure also took into account future operational and maintenance costs. He said the sum was misleading as the actual maintenance cost would be very low and could be kept lower with open and competitive tenders.

Pua added that the proposed acquisition plan would be self-financing, and would not need additional government expenditure.

DAP had previously urged the government to renegotiate current toll concessionaire contracts, questioning the need to ‘compensate' toll owners for not raising rates.