RM120mil spent for Cheras-Kajang Highway toll cuts

The halving of toll charges for Cheras-Kajang Highway comes with a very hefty price tag - RM120.55 million in government compensation and a 15-year extension to the concession agreement.

This was revealed by Works Minister Shaziman Abu Mansor (right) in Parliament yesterday, following a question by Serdang MP Teo Nie Ching.

The minister also said that concessionaire Grand Saga Sdn Bhd had agreed not to raise toll charges for another three years. Effectively, Grand Saga will be allowed to collect toll charges until 2045.

In addition to the slashing the toll from RM3.80 to RM1.90, Prime Minister Najib Abdul Razak also announced the abolition of toll collection at two toll booths along the highway on March 1, amidst much fanfare.

Longer toll payments 'not justified'

Met later, Teo said the extension of the concession agreement was cannot be justified as Grand Saga had profited handsomely from toll collections since 1999.

She pointed out that while the highway was constructed at a cost of RM282 million - and maintenance cost up until 2010 was RM147.31 million - it was a paltry sum compared to more than RM870 million made from toll collections and government compensation thus far.

"When Najib made the announcement on March 1, he was fooling the public. He did not mention about the new agreement.

"We had to wait until Parliament convened before we could find out, and put the works minister on a spot.

"This is Najib's election play. He will throw a few bones without explaining what is really happening behind the scenes," adds Teo.

"All this is a result of a lopsided concession agreement. Our future generations will bear the brunt," she said.