Sunday, May 11, 2008

Lulu Not Pinning Her Hopes On Getting A Fair Review

the minister, in answering the question from Lulu's MP, was reported saying

The Works Ministry will review highway concessions which may result in lower toll rates.
Minister Datuk Mohd Zin Mohamed said he would call for a detailed study to be carried out before reviewing the concession agreements.
Some of the important factors to be considered were the traffic volume forecasts, toll rates and period of the concession, he said.
“We will compare the toll collections, and maintenance and operational costs, as well as ‘heavy’ maintenance costs,” he told reporters at the Parliament lobby yesterday.
Heavy maintenance, he said, referred to scheduled maintenance to resurface the entire highway while normal maintenance involved patching up potholes.
Mohd Zin said there was a toll review mechanism clause in the concession agreements which prevented concessionaires from raising toll rates as they pleased.

This has led many to be hopeful that the toll review would bring lower toll charges without the government having to "compensate" the concessionaire.

However, looking at their track record,
PLUS was given a 30 year concession beginning 1988 for the building and running of the North-South expressway.
In 1999, they were given a 12 year extension in return for a renegotiation of the concession providing for a new toll structure, with increments every three to five years instead of annually in the original contract.
So, from 30 years, in became 42 years.

ahh.. you can trust the government to renegotiate it to a more rounded number.
In 2005, under a package to upgrade the expressway, adding two additional lanes in the Seremban-Ayer Keroh and Rawang-Tanjung Malim stretches and relocating the Jelapang toll booth in Ipoh, the government renegotiated the contract and gave PLUS an extension of eight years and seven months.

Now, we are stuck with PLUS, raising the toll every three years for up to 50 years and 7 months from the original 20 years.
Thanks to our fair minded, no vested interest government.

Lulu is going to be pessimistic on this as the government has not shown Lulu any reason to see it otherwise.
Lulu is additionally concerned as the current ruling party may be ruling no more in the very near future, and may choose to sacrifice the nation in return for sadistic revenge by locking in the most unfair and obviously lowsided deals with the "no vested interest" concessionaires.



Anonymous said...

"The Works Ministry will review highway concessions which may result in lower toll rates."

Dun nid reviews.

just UN-OSA all agreement.

Khun Pana said...

In your dreams , just in your dreams. There is no way bn gonna lower anything that is lower than their ego.
I take it as another bn post election propaganda . As well as just a show done by the new JKR minister just to show that he is working on something.
End of the day , bn will announces that the toll rates very reasonable and government will not increase the rates this year just to show it is a caring and sayang government.

CK said...

haha.... u r definitely not lu-lu
forget it lah. i dun want to be lu-lu anymore. unless they reveal ALL agreement and contract, nothing can happen.

Anonymous said...

If they refused to reveal what's in all the toll agreements, then you can treat what they say as bullshitting.
In the final analysis, once the PR takes over the running of the country, then it can reveal these agreements for what they are.
Then those who signed them would be asked to account for them.

Anonymous said...

Lulu - foget about expiry of the concession - it is like freehold. See, then PLUS extend the highway by another lane, they can get extend to the concession duration. Why UMNO wants to give up when it is like cash cows and ducks that lay golden eggs.

The only thing is to see the agreement. When can we see it? Only when PR takes over the Federal Government.