KUALA LUMPUR, Nov 12 — DAP wants to the government to reveal the real cost of acquiring all 26 highway concessionaires after the Minister in charge of the Economic Planning Unit (EPU) in the Prime Minister’s office, Tan Sri Nor Mohamad Yakcop, revealed that it will cost the government RM231 billion.
Nor explained that the cost also included future operational and maintenance cost.
Prime Minister Datuk Seri Najib Razak promised in April that the EPU would complete its study on structuring all concessionaires within three months but EPU has failed to do so and indicated that the report will only be ready by December instead of July.
DAP estimates that the real cost of acquiring the concessionaires will be RM25 billion and believes that government will be able to repay the cost within 10 years even with reduced toll rates.
Petaling Jaya Utara MP Tony Pua stressed that the government does not have to pay compensation to the toll operators for future profits except the North-South Expressway and the Penang bridge.
“For a highway like the LDP which still has a life span of 20 years, and the toll rates expected to be increased to RM3.20 from the current RM1.60 by 2016, it is expected to cost the government less than RM1.5 billion to buy back,” he told reporters during a press conference at Parliament.
He added that the government does not need to buy back all highways except for those “who are clear-cut making astronomical profits at the expense of the daily commuters."
Pua confirmed that he would be submitting a formal request on the cost to the minister.
“I have requested for the detailed breakdown of the cost of the buy-back in Parliament and the minister has agreed to provide it in writing. I will be handing over a formal letter to request the information from the minister and I hope that he will reply as soon as possible so that the interests of millions of users who use tolled highways are protected," he said.
He added that the party believes the cost is inflated to compensate the concessionaires for future loss of profits.
“Should the government decide to pay these concessionaires for 100 per cent loss of future profits, then it makes the entire buy-back exercise pointless as it just means that the burden of toll is shifted from the commuters to the taxpayers,” he stressed.
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