Monday, March 10, 2008

How to address toll rate?

The Star has a write-up on our proposal to review toll rate, particulary LDP.

Below is the report but I have further explained that the party had one suggested to the government of buying over these highways from private companies since the compensation paid is already higher than the contruction cost of the highway.

With that, the government can either provide toll-free highway or reduced-toll highway to motorists.
We'll address the toll rates, says PJ DAP

By VIVIENNE PAL

ONE of PJ DAP's pledges in its five-point manifesto is to enhance quality of life by decreasing the cost of goods and renegotiation of unfair contracts, including toll rates.

The manifesto was launched last month at the DAP centre in Damansara Utama by the members of what has now become the new government in PJ.

The team, comprising new PJ Utara MP Tony Pua, Damansara Utama assemblyman Dr Cheah Wing Yin, Kg Tunku assemblyman Lau Weng San and Bukit Gasing assemblyman Edward Lee, outlined the Damansara-Puchong Highway (LDP) as an exam-ple.

“The cost of building the highway was only RM1.3billion, but the profit over 30 years would amount to RM18.7billion.

That works up to a return rate of 47%,” Pua had said during the press conference then.

Some two years ago, when the government decided to hike up toll rates, the DAP had put forward a suggestion that the government buy back highways specifically in the Klang Valley at cost price in order to reduce the burden on motorists.

The high rates of tolls, specifically on the LDP, have been the grouse of PJ-ites since toll rates were hiked, particularly in the light of the traffic congestion that still continues to occur on the highway despite the price increase.

The PJ DAP plans to keep its promise, but presumably, residents cannot expect an overnight change.

“We will certainly look into it from a larger perspective particularly from the legal and technical aspect of it,” said Lau during a phone interview yesterday.

“There are certain terms in the agreement that the government of the day has to adhere to.

“We have to see if there are hidden costs involved in the terms and agreements of the highways involved before we can make the appropriate move,” said Lau.

1 comment:

Unknown said...

Buying out the highway is the only way to stop raising toll as I believe there was a 6% annual toll rate adjustment in the concession agreement. Please take advantage of the weak stock market now to make the privatization not so costly.