Guan Eng: Abolish North South Highway toll rates

KUALA LUMPUR, Nov 4 ― The North-South Expressway toll rates should be abolished instead of hiking them, DAP’s Lim Guan Eng said today.

The Penang chief minister and Bagan MP claimed that the North South Highway has fully recouped its construction cost and capital expenditure of RM5.9 billion.

He referred to Works Minister Datuk Fadillah Yusof’s statement that the overall toll collected for the North South Highway was RM36.39 billion at the end of 2015.

“Furthermore, the total amount of compensation paid out by the federal government to PLUS following the deferment in toll hikes until 2015 was RM917.1 million.

“In other words, thisRM 36.39 billion collected from Malaysians, is six times more than the construction cost of RM5.9 billion,” he said in a statement issued today.

The DAP secretary-general added that the costs incurred in land acquisition for the highway were covered by the federal government.

“Even if we took into account maintenance and widening of roads, such extra costs cannot exceed the RM36.9 billion collected from the public,” he said.

Therefore, he reasoned that the toll collection should be abolished.

He then demanded to know the costs of the annual maintenance of the North South Highway.

“Since PLUS has recouped its capital expenditure, why have the toll rates not gone down to reflect only maintenance costs?” he asked.

He said toll concessions are against public interest that benefit crony companies at the expense of ordinary Malaysians.

“Whilst DAP does not oppose toll operators getting back their capital investment and construction cost, why should they be allowed traffic volume guarantees, guaranteed profits and even extraordinary profits collected even after the initial construction cost has been recouped?” he asked.

As for Fadillah's announcement that the restructuring for toll rates in 2016 and 2017 have been deferred, Lim said this is but a “small victory” as Malaysians will still have to pay the RM59.77 million compensation indirectly to four toll concessionaires.

He said the decision to postpone toll hikes until the end of 2017 showed Putrajaya had bowed to public pressure.

Fadillah said that if the toll hike was deferred, the federal government would have to pay RM59.77 million in toll compensation for the four highways in 2017.

“As the 2017 Budget did not provide for any toll compensation payments, ordinary Malaysians will have to bear the full brunt of the toll hikes,” Lim said.

He also demanded to know whether the concession period of the four highways ― Eastern Dispersal Link (EDL), Kajang-Seremban Highway (Lekas), Senai-Desaru Expressway (SDE) and Guthrie Corridor Expressway (GCE) ― will be further extended in lieu of paying compensation, just like the extension of the concession period for the North-South Expressway by an extra 20 years from 2018 to 2038.