Pua: Toll concessionaires will benefit 'astronomically' from gov't compensation

Petaling Jaya Utara MP Tony Pua today claimed that the concessionaires of the four tolls set to be abolished by the government, stand to make "astronomical" profits from government compensation.

In a statement, Pua said that the government will need to pay Plus Malaysia Bhd (PLUS) and Malaysian Resources Corporation Berhad (MRCB), which operate the tolls, a total of RM118 million per year, from 2018 to 2038, when their concessions are set to expire.

"Assuming the compensation doesn't increase over time, it will still cost a whopping RM2.36 billion. However, this compensation amount will be even higher when it is calculated based on forecast toll usage in the future.

"Whether the compensation is given out in cash, or extensions of concessions, the person footing the bill will still be the rakyat. Let's not forget that the government had already compensated toll concessionaires before, when they announced halting toll rate hikes, in past budget speeches.

"The prime minister's toll 'freebie' is no freebie, after all," said Pua, adding that in many circumstances, compensating concessionaires based on revenue loss costs more than expropriating the highways outright.

Using the Damansara-Puchong Highway (LDP) as an example, Pua said RM1.05 billion had already been compensated to its concessionaire Lingkaran Trans Kota Holdings Sdn Bhd (Litrak) over the past 25 years, with another 13 years to go before the payouts would end.

This is way more than the actual cost to construct the highway, including interest, which amounted to RM1.3 billion, he noted.

Pua then urged the administration of Prime Minister Najib Abdul Razak to take a leaf out of Pakatan Harapan’s idea to abolish tolls in stages through the “restructuring and renegotiation of toll agreements with concessionaires”.

Najib had during the Budget 2018 presentation, announced that four tolls, namely the Batu Tiga and Sungai Rasau in Selangor, as well as the Bukit Kayu Hitam in Kedah, and the Eastern Dispersal Link (EDL) in Johor, will be abolished from Jan 1, next year.

PlUS operates the first three tolls respectively, while MRCB operates the EDL. -Mkini