Guan Eng: Like in 2010, Putrajaya can stall toll hike again

(MM) – Putrajaya had succeeded in stalling a toll rate hike back in 2010 and should be able to do it again for next year’s scheduled increase, DAP secretary-general Lim Guan Eng said today.

In a statement here, Lim pointed out that the five-year moratorium imposed in 2010 showed that the ruling Barisan Nasional (BN) coalition also has the power to renegotiate an ever better deal for the public.

“We should be reminded that barely three years ago on October 15, 2010, then first term Prime Minister Datuk Seri Najib Razak announced a five-year cap on toll rate for the North-South Expressway and four other associated expressways when tabling the 2011 Budget in the Dewan Rakyat,” Lim said in a press statement here.

“For this reason, BN should not lie that highway contracts cannot be renegotiated to stop toll rates hike for companies that had recouped their investment or construction cost when BN has successfully renegotiated such contracts in 2010 to forestall toll rates increases in preparation of the 2013 general elections.”

The moratorium will end in 2015, following which an increase in toll rates will be fixed at a smaller rate of five per cent every three years, instead of the original 10 per cent hike.

In addition, the North-South Expressway Project (Plus) will also waive RM6.2 billion of its compensation claims against Putrajaya.

“The double-standards of the BN government recycles itself in being able to afford to pay RM400 million in compensation for not increasing toll charges before the general elections but not being able to afford to pay RM400 million once the elections are over,” Lim said.

“Despite signing the contract, the BN government can still escape from the unfair terms by renegotiating a new contract.”

Lim’s remarks today comes following a similar comment by PKR MP Rafizi Ramli who had said on Monday that Putrajaya can put off plans to raise toll rates next year since owning or holding major stake in toll concessionaires gives it decision-making powers.

According to Rafizi, the North-South Expressway Project  — which handles among others the North-South Expressway, the North Klang Valley Expressway and Central Link Expressway— is wholly-owned by government funds such as Khazanah Nasional Bhd and the Employees’ Provident Fund (EPF).

Meanwhile, the second largest operator Projek Lintasan Kota Holdings Sdn Bhd — which included the Ampang-Kuala Lumpur Elevated Highway and Guthrie Corridor Expressway — is wholly-owned by Putrajaya’s fund manager Permodalan Nasional Bhd.

Gamuda Bhd — which operates the Damansara-Puchong Expressway (LDP) and the Sprint Highway — is the only privately-owned firm, but 22.59 per cent of its shares are held by government funds such as EPF, Tabung Haji, and others.

In response, the Selangor state government announced today that it will formally oppose any attempt to raise toll rates on three highways operating in the state in its capacity as a minority shareholder, according to opposition chief Datuk Seri Anwar Ibrahim.

Anwar, who is the state’s economic advisor, said it is well within the state’s right to register its opposition to toll hikes on the Shah Alam Expressway, Sprint, and LDP highways as it has a stake of between 20 and 30 per cent for each development.