KUALA LUMPUR: Petaling Jaya Utara Member of Parliament Tony Pua said today the concession agreement for the Puchong Damansara Expressway (LDP) allows the Government to take over the highway for public interest.
Pua, who was among a delegation of DAP Members of Parliament who got a brief view of some of the 16 declassified toll agreements today at the Work's Ministry, said there is a clause in the LDP agreement which allows the Government to take over the expressway on grounds of national interest.
The clause in the agreement indicates the Government may ”buy back” the LDP “notwithstanding any provisions and can be done at any time, by giving the concessionaire three months notice.”
Under the agreement the Government would have to pay the cost of construction, minus any outstanding debts the concessionaire has (with the Government) and pay shareholders any outstanding money they have lent the concessionaire, at the rate of 12 per cent.
Buying back the LDP will not cost the Government billions and I don't see any problems with doing it.”
Pua said even if the Government does not want to expropriate the concession they should used the terms to ensure the company imposes more appropriate toll charges, for users.
The company is already making excessive profit and has already recovered the cost of constructing the Expressway.”
He said construction cost for the highway was just RM1.327 billion and the company's projected profit during the 30-year-concession is RM18.86 billion.
Pua said under the agreement, the LDP is suppose to be a dual three lane carriage way with a design speed of 80km an hour.
However many bottle necks exist along the expressway reducing the road way to just two lanes in many stretches.
We would like to know if this is a breach of the agreement and if the government will take any action.”
Pua said members of the public who use the highway may be able to sue the company or even the government for specific performance, to compel the parties to follow the agreement.
Meanwhile Serdang MP Teo Nie Ching who examined the concession agreement for the Penang Bridge said its terms for compensation for expropriation, was excessive.
The agreement insulates the concessionaire for making any loses. The company will be compensated, if it fails to meet its obligations and if the Government decides to take over.”
She added the government would have to pay the concessionaire future projected profits of up to ten years, to terminate the agreement.
Both Segambut MP Lim Lip Eng, who examined the agreement for the Grand Saga Highway, and Kepong MP Dr Tan Seng Giaw, who examined the agreement for the Smart Tunnel, lamented that the documents given to them were incomplete.
Not to be outdone, MCA Youth also sent a team of five lawyers led by its legal bureau head, former Kota Melaka MP Wong Nai Chee.
Wong said several of the concessionaire companies received millions of ringgit in loans from the Government to undertake the projects, which is contrary to the concept of privatization, where companies are suppose to find their own funding.
He said they are examining the viability of privatization of highways and their finding will be channeled to MCA ministers, to bring up in Cabinet.
Neville Spykerman
The Malaysian Insider
05/01/09
mi1: Find out who is the owner, proxies of the companies!!!
Pua, who was among a delegation of DAP Members of Parliament who got a brief view of some of the 16 declassified toll agreements today at the Work's Ministry, said there is a clause in the LDP agreement which allows the Government to take over the expressway on grounds of national interest.
The clause in the agreement indicates the Government may ”buy back” the LDP “notwithstanding any provisions and can be done at any time, by giving the concessionaire three months notice.”
Under the agreement the Government would have to pay the cost of construction, minus any outstanding debts the concessionaire has (with the Government) and pay shareholders any outstanding money they have lent the concessionaire, at the rate of 12 per cent.
Buying back the LDP will not cost the Government billions and I don't see any problems with doing it.”
Pua said even if the Government does not want to expropriate the concession they should used the terms to ensure the company imposes more appropriate toll charges, for users.
The company is already making excessive profit and has already recovered the cost of constructing the Expressway.”
He said construction cost for the highway was just RM1.327 billion and the company's projected profit during the 30-year-concession is RM18.86 billion.
Pua said under the agreement, the LDP is suppose to be a dual three lane carriage way with a design speed of 80km an hour.
However many bottle necks exist along the expressway reducing the road way to just two lanes in many stretches.
We would like to know if this is a breach of the agreement and if the government will take any action.”
Pua said members of the public who use the highway may be able to sue the company or even the government for specific performance, to compel the parties to follow the agreement.
Meanwhile Serdang MP Teo Nie Ching who examined the concession agreement for the Penang Bridge said its terms for compensation for expropriation, was excessive.
The agreement insulates the concessionaire for making any loses. The company will be compensated, if it fails to meet its obligations and if the Government decides to take over.”
She added the government would have to pay the concessionaire future projected profits of up to ten years, to terminate the agreement.
Both Segambut MP Lim Lip Eng, who examined the agreement for the Grand Saga Highway, and Kepong MP Dr Tan Seng Giaw, who examined the agreement for the Smart Tunnel, lamented that the documents given to them were incomplete.
Not to be outdone, MCA Youth also sent a team of five lawyers led by its legal bureau head, former Kota Melaka MP Wong Nai Chee.
Wong said several of the concessionaire companies received millions of ringgit in loans from the Government to undertake the projects, which is contrary to the concept of privatization, where companies are suppose to find their own funding.
He said they are examining the viability of privatization of highways and their finding will be channeled to MCA ministers, to bring up in Cabinet.
Neville Spykerman
The Malaysian Insider
05/01/09
mi1: Find out who is the owner, proxies of the companies!!!
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