Categorised | News

Committee to review highway concession agreement

KUALA LUMPUR, 5 Jan 2009: The MCA Youth will set up a committee to study the highway concession agreement between the government and 22 highway concession companies nationwide.

MCA information chief Lee Wei Kiat said the committee, which will consist of several lawyers, will review and analyse the concession agreement.

Among the issues are the compensation of RM104 million given to the concession company that built the Grand Saga Highway for not increasing their toll rates. However, he could not confirm whether the amount had been paid out.

“We will study the method of the loan given to the company by the government, it is the government’s responsibility to pay compensation but there is no clear method of paying the compensation,” said Lee when met after he reviewed the document at the library of the Public Works Ministry, here today.

The government had also given a loan of RM300 million to the Silk Highway concessionaire and RM80 million of the loan was interest free, he said.

In the Damansara-Puchong Highway (LDP) agreement, if the profits exceeded the targeted amount, it would be divided equally between the concession company and the government, said Lee.

However, the profits were not recorded; instead only the number of vehicles using the highway, which was 227 million in 2007 and 233 million in 2008 had been recorded, he said.

He urged the government to reveal the profits obtained by both parties and added that a report on the agreement would be made and handed to MCA Youth Chief Datuk Wee Kah Siong for further action.

A survey by Bernama revealed that only media personnel and politicians, including DAP Economic Advisor Tony Puah, were present to review the highway concession agreement.

As of last 2 Jan, the public was allowed to check the highway concession agreement between the government and companies involved following the cabinet’s decision to disclose the agreement on 17 Oct. — Bernama


Post to Twitter Post to Google Buzz Post to Delicious Post to Digg Post to Facebook Post to StumbleUpon

Tags: ,

Comments are closed.

Most Read (Past 3 Months)

Most Comments (Past 3 Months)

  • None found




  • The Nut Graph


Switch to our mobile site