Thursday 8 September 2011

Toll concessionaires raked in RM13bil in profits

Penang Chief Minister Lim Guan Eng today questioned why major highway concessionaires were still increasing their toll rates when they have already recovered their construction costs and were raking in "exorbitant" profits.

lim guan eng press conference on economist report 140811 1Deputy Works Minister Yong Khoon Seng, in a parliamentary written reply to Lim, revealed that concessionaires managing 27 highways have raked in a total of RM37.7 billion from toll collections, in addition to RM2.1 billion from the government as compensation.

This is despite the total construction costs amounting to RM26.4 billion,giving the concessionaires profits exceeding RM13 billion, Lim, who is also DAP secretary-general, told a press conference at the party headquarters in Kuala Lumpur today.

"This is a cash cow at our expense. We want to know why the toll rates keep on increasing. They are already making money. Project Lebuhraya Utara Selatan (Plus) is the most glaring example and its concession will last until 2039," he said.

According to statistics provided by Lim, the North-South Expressway was built at a cost of RM5.9 billion, but it has since collected more than RM23.5 billion in toll fees, on top of RM735.2 million in compensation from the government.

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