Tuesday, November 28, 2006

 

Fomca Urges Govt To Review Toll Concession Agreement

November 28, 2006 20:52 PM

By Mohsin Taib

KUALA LUMPUR, Nov 28 (Bernama) -- The Federation of Malaysian Consumers Associations (Fomca) has urged the government to review the agreements on toll concessions describing them as "one sided" and a burden to the people.

Secretary General Mohd Shaani Abdullah said since the government through Tenaga Nasional Bhd could review the contract with the independent power producers (IPPs), the same thing should be done to the toll concession agreements.

"If the contract with IPPs can be reviewed, why can't it be done to the companies awarded the toll concessions," he told Bernama here Tuesday.

Mohd Shaani was commenting on a statement by Works Minister Datuk Seri S. Samy Vellu on Monday that the five concession companies in the Klang Valley have been allowed to increase toll charges starting Jan 1.

The five concessionaires are those operating the Damansara-Puchong Highway (LDP), Guthrie Corridor Expressway (GCE), Shah Alam Highway (KESAS), Kuala Lumpur-Karak Highway and the Grand Saga Cheras Highway.

Samy Vellu said the increase was aimed at removing some of the RM2 billion subsidy borne by the government.

Mohd Shaani said the concession agreements should be reviewed as the companies had collected huge profits due to the high volume of traffic that way surpassed earlier projections.

He added the huge profits and high traffic volume were good reasons for the government to call for a review or at least ask for discounts from the companies.

"The Minister said the toll increase cannot be avoided. Fomca wants to know why wasn't this thought of before signing the agreements," he added.

-- BERNAMA


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