The federal government should disapprove the proposed toll hike for the Penang Bridge and order the concessionaire, Penang Bridge Sdn Bhd (PBSB), to reduce the rate instead.

Penang DAP organising committee chairperson Danny Law Heng Kiang said it was

unacceptable and senseless to approve the PBSB-proposed toll hike as the company is raking in huge profits by managing the bridge.

"The federal government should propose a toll reduction to ease the financial burden of vehicle users," he added.

Under the concession, agreed upon by the federal government when the management of Penang Bridge was privatised in1993, the concessionaire reserves the right to increase the toll rates by 10 percent across the board for all vehicles once in every five years.

Although the proposal is subject for cabinet's approval, the contract stipulates that the federal government will have to compensate PPSB yearly if it disapproves any changes.

Due to this contractual obligation, the federal government has been paying a heavy price by disallowing a proposed toll hike in Oct 1998.

Since 1998 until last year, the federal government has forked out RM41.72 million, comprising RM1.83million in 1998, RM7.73 million in 1999, RM8.16 million in 2000, RM8.61 million in 2001, RM8.59 million in 2002 and RM6.8 million in 2003, to compensate PPSB.

The government is yet to announce its decision on the last toll hike proposal submitted in Oct 2003.

High profit

"For the sake of public interests, the government should announce it soon," said Law.

He also criticised the concession contract, which puts the government in a lose-lose situation."I think the contract was drafted merely to benefit certain political cronies," he claimed.

PBSB, is a wholly owned subsidiary of Intria Bhd. The latter's biggest shareholders are Umno-investment arm, United Engineers (M) Bhd (19.99%) and Serayin Sdn Bhd (24.66).

About 100,000 vehicles ply the country's longest bridge, that connects the Penang island with the mainland, daily. It is estimated that PPSB gets RM128 million in toll collections yearly.

Since becoming operational in 1985, Law said the bridge had not undergone any major repair or upgrading works.

"One can easily say that PPSB had been the only company in the country that makes money every second at a low maintenance cost. So why a hike?" he asked.

Instead, he said, the federal government should reduce the toll rate, scrap the contract and work out a plan to gradually abolish toll charges.

The DAP leader called on the state government to heed public opinion to push for a toll-free bridge and bring the elevated sea highway under its management.

Under the present concession arrangement, the state government has neither controlling stake nor a say in managing the bridge.

"The bridge is a goose laying golden eggs, but the people of Penang are not gaining anything from it. It's a great loss to Penangites," he added.

ATHI VEERANGGAN is malaysiakini 's Penang-based stringer.