KUALA LUMPUR — September 29, 2017: The Association of Malaysian Hauliers is claiming that toll rates could rise if UEM Edgenta is allowed to take over the maintenance of highways from PLUS.
In addition, the association is asking why this is happening now, especially if UEM Edgenta had been a service provider all along to PLUS.
The New Straits Times quoted association president Nazari Akhbar as asking why it’s necessary to have a capital investment in excess of RM20 billion just for the maintenance.
“In their proposal, UEM Edgenta stated that they are seeking a long-term contract to commit to capital investment.”
The proposal stated that the contract could be in excess of RM20 billion for 21 years, translating into to about RM1 billion per year.
“This sounds highly questionable. UEM Edgenta also intends to set up plants along the highways to process materials. Does this not seem like unnecessary costs?” asked Nazari, adding that many aspects needed clarification.
In turn he lauded Maju Holdings’s proposal not to increase toll rates if its allowed to take over the highways under PLUS.
Maju Holdings has been saying that under its takeover proposal, it would not raise toll rates for 20 years.