Putrajaya mulls highway takeover, toll collection for Johor’s EDL
By Ida Lim November 24, 2013
KUALA LUMPUR, Nov 24 — Putrajaya may consider ditching its initial plans to acquire the Eastern Dispersal Link (EDL) in Johor for a reported sum of RM1.2 billion and let the highway’s current owner start collecting toll instead, The Edge financial news weekly reported.
The possibility of letting Malaysian Resources Corp Bhd (MRCB) collect toll for use of the EDL comes as the government seeks to cut subsidies, with Putrajaya having recently slashed fuel and sugar subsidies to save more money.
“In the case of EDL, an option being explored is to allow the owner MRCB to collect toll [instead of the government taking over the highway]. There could be an element of compensation to reduce the toll rates,” an unnamed source was quoted saying by The Edge.
Motorists have been using the expressway in Johor Baru without paying toll since last year, with the government compensating MRCB for its losses after it was stopped from collecting toll.
The government reportedly pays a monthly compensation of RM11 million to MRCB, with the payment to the infrastructure developer to continue until a full settlement for the takeover of the 8.1km-long EDL.
MRCB’s 2012 annual report showed that it was given RM68.28 million last year as compensation over the EDL highway which was opened for use last April, with the payments by the government to the highway concessionaire starting from last May, the weekly reported in its latest edition.
The takeover deal between Putrajaya and MRCB was expected to be done in one years’ time from September 10, 2012, the group had said in the annual report last year.
But MRCB group chief executive officer Imran Datuk Salim said the negotiations with Putrajaya and other parties over the EDL have yet to conclude.
“It will take some time to iron out the details on the best way forward for the EDL in order to realise the benefits for all parties involved, especially the motorists in Johor Baru,” Imran was quoted saying.
Last September, the government had reportedly given its assurance that no tolls will be collected after it takes over the EDL.
According to The Edge, Putrajaya is also reviewing other highways where it had stopped the increase of toll rates and needed to pay compensation to highway operators.
In 2013, the government would be paying a total of RM587 million to compensate for tolls, The Edge reported, citing the country’s Economic Report that was released recently.
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