Pakatan pledges to take over MEX highway

Pakatan Rakyat has promised to take over the Maju Expressway (MEX) should it form the next federal government, for this can save the people RM4.6 billion in toll charges.

In a joint statement, PKR, PAS and DAP said this exercise could be expanded to cover other highways because all highway concessionaires were profiteers while the people were burdened with spiralling living costs.

"This is among Pakatan's promises in the Buku Jingga (policy document), which proves we champion the interests of the people, unlike BN which only enriches its cronies," Pakatan said in a statement today.

The three opposition coalition members said the plan to take over MEX would be regardless of the outcome of MEX owner Maju Expressway Sdn Bhd's plan to sell the concession to EP Manufacturing Bhd for RM1.7 billion.

Maju Expressway is 96.8 percent owned by Abu Sahid Mohamed, described as a low-profile tycoon who is best known for turning around the ailing Perwaja Steel Bhd and building the Maju Junction shopping mall.

Pakatan argued that Abu Sahid stood to make a whopping RM1.09 billion in this deal, out of an initial investment of RM60 million, which would be a 1,800 percent return on investment.

‘Takeover cost is RM401 million'

The balance of MEX's construction cost was funded by taxpayers through a RM976.7 million government soft loan.

The three parties argued that based on available information on the concession agreement, it would only cost the federal government RM401 million to take over MEX.

"A compensation of RM401 million is more than enough for the concessionaires, who invested only RM60 million in eight years," says the statement.

The concessionaire would make RM3.2 billion in profit over the next 25 years, during which MEX is projected to collect more than RM5 billion in toll charges.

The Pakatan statement was signed by PKR strategy director Rafizi Ramli, DAP publicity chief Tony Pua and PAS research and development director Dzulkefly Ahmad.

MEX is a 26km highway linking Kuala Lumpur with the administrative capital of Putrajaya. It was commissioned during the Mahathir administration.