The Federal Government is lying about not fixing toll prices for the controversial KIDEX (Kinrara Damansara Expressway), said Tony Pua, Petaling Jaya Utara MP.
He added that the government claiming that the toll rates are yet to be determined is highly unlikely as previous dealings namely the LDP, PLUS and the Penang Bridge toll rates were fixed before the concessions agreement were signed.
“I have had the benefit of browsing through all privatised highway toll concession agreement in January 2009 when the Government decided to declassify these agreements for a period of 3 weeks. All of these agreements from the LDP to PLUS to the Penang Bridge, were signed not only with the toll rates fixed, even the formula for the periodic increase in toll rates based on the volume of traffic were specifically cast in stone in these contracts,” said Tony Pua.
Yesterday, Works Minister Fadhillah Yusof in a written Parliamentary reply to DAP Puchong MP Gobind Singh Deo, stated that the toll rates for the 48-year KIDEX concession had “yet to be determined” despite the concession agreement being inked last year.
“I am convinced that the Federal Government is lying when claiming that no toll rates have been fixed in the concession agreement”
It is more likely that the Government is conniving with the concessionaire to hide this information from the public to ensure reduced opposition and to leave the rakyat with a ‘fait accompli’ once the highway is completed,” he said, adding that by the time of completion, the Government will be held at ransom by the concessionaire and will be in a weaker negotiating position to demand lower toll rates.
The Petaling Jaya Utara MP compared the agreement made to a contractual commitment to a house purchase from a developer at a project launch with the price to be decided 3 years later after the project has been completed.
He also questioned how KIDEX was able to convince the banks to finance the project without a toll rate agreement that would provide sufficient cashflow and profits to be able to repay its borrowings.
“The Works Minister is either a complete fool to have signed a toll concession agreement for 48 years without an idea of how much toll will be charged and collected, providing the necessary return on investment to the concessionaire; or he is obviously lying to Parliament.”
“It is extremely reckless and irresponsible for the Federal Government to commit to a RM2.42 billion highway, without knowing how much the rakyat will be burdened for the use of the highway.” -The Rocket
