For whom the tolls toll?... ( 3 )
How are toll-paying highways designed, and what choices are given to road users who want alternate access?
Podcast Special
"Would you want 11%? 12% or 30%? Because we have already created the cash-flow figure."That's what Khalid Ibrahim, former Group CEO of Kumpulan Guthrie, used to tell the EPU officers when the GLC was making the submission to the government to build the Shah Alam-Rawang Highway.
Download the preview (MP3, 39 seconds, 48kb). The full podcast will follow soon.
This sounds like an old broken record and the question has been asked a zillion times. But you don't get good answers, as evidenced in the case of Litrak which operates the Lebuhraya Damansara-Puchong (LDP), which institutes the highest toll increase on January 1, with the prior consent of the government.
(Read 'For whom the tolls toll?' series, #1 and #2.)
The 33-year concession accorded by the government to the operator of LDP in 1996, during days when Internet wasn't pervasive, saw Litrak usurp a total of nine existing roads and build only two new ones.
You pay toll, you still get jammed
In other words, the existing roads, including State Roads, were surrendered to Litrak to levy toll charges while road users were given little option for toll-free alternative access.
Even the willing toll-payers, they are not guaranteed that they would not be diverted into traffic jams once they exit LDP's toll booths. Road users has been questioning the highway's design and its alignment to the traffic grid ever since LDP started its toll-collection in 1998, and the situation has not abated to date.
In other words, you pay toll for the same existing access, and you still get jammed as traffic volume increased over time while bottlenecks at LDP's exit points remain unresolved.
Litrak, formerly known as Lingkaran Trans Kota Sdn Bhd, which is linked to Gamuda Berhad, is the concessionaire for LDP.
Details related to the matter were contained in Litrak's concession agreement that was exposed January 4 by Tian Chua (picture above), Parti KeAdilan Rakyat Information Chief, representing the Anti-Toll Coalition.
33-year toll on 9 existing roads originally built on taxpayers' money
According to the agreement, which was stamp duty-paid as shown in a copy inspected by Screenshots, the government was "desirous to privatise the improvement, upgrading, design, construction, maintenance, operation and management of the LDP", which was to consist of the following 9 existing roads:
- Jalan Damansara from the south of the existing Jalan Kepong/Jalan Damansara junction at coordinate E-9259.548 N-2559.751 to the north of Kampung Sg. Penchala;
- Jalan Damansara from the south of Kampong Sg. Penchala to Jalan SS21/33;
- Jalan SS21/33, Lebuhraya Petaling Jaya, Jalan Perbandaran, Jalan SS8/1, Jalan PJS 8/1 and Jalan PJS 7/1;
- Road from Sunway Interchange at Shah Alam Expressway to Jalan Puchong (State Road B11) at Puchong Jaya;
- Jalan Puchong (State Road B11) south of Puchong Jaya to existing junction at Puchong Batu Dua Belas;
- Road to the west of Jalan Puchong (State Road B11) from existing junction at Puchong Batu Dua Belas to existing junction at Kampung Baharu (Puchong Utama);
- State Road B16 from existing junction at Kampung Baharu (Puchong Utama) to existing junction to Serdang;
- Road joining State Road B11 and State Road B16 from existing junction in Serdang to existing junction in Dengkil at coordinate E-3042.345 N-22408.580; and
- State Road B7 from North South Expressway Central Link (Hicom East Interchange) at Jalan Kewajipan at coordinate E-13878.078 N-15938.570 to existing junction at Puchong Batu Dua Belas at coordinate E-10051.066 N-17011.920.
On Page 3 of the agreement, it says: The Concession Company submitted the proposal, which contained coditions to usurp the aforementioned existing roads, and the Government had accepted it.

Question: Has the government surrendered the rakyat's interest, wholesale, when it decided to surrender the above 9 existing roads, including several State Roads, to Litrak while bottlenecks at the LDP exit points remain a pain in the neck?
As a road user from Subang Jaya surrounded by existing roads No. 3, 4, 5 and 9, as a someone who is forced to pay toll to LDP as there are no other options except the choked Federal Highway, I fully understand the hardship to the core.
What has Litrak done in its approved design in re-aligning LDP with the bottlenecks at its toll exits? Drop by the Freescale (Motorola) junction. LDP and the government had stopped stationing personnel at the contra-flow trafic arrangement which they introduced in 2000, making it a high-risk accident zone that kills.
Whereas, the two new roads that Litrak built for LDP are:
- A new highway at Lampung Sg. Penchala; and
- A new highway over the mining road and Sungai Klang to Sunway Interchange on the Shah Alam Expressway.
Note that, the Shah Alam Expressway, also known as Kesas, was given another 33-year concession to a company also linked to Gamuda Berhad. Kesas has levied toll increase on January 1, 2007.
Putting it in context, Chua summarised:
The real issue is this: The toll charges, and the compensation, do not reflect the actual cost of building the highway, and the amount of cash that Litrak keeps collecting from road users after it has recouped the construction cost.
The truth is all this is just wayang as the government has already agreed to the toll rates when it signed the concession agreement that is lop-sided and against the interest of the rakyat.
So, is this the manner all privatisation projects, including privatisation of government roads built on taxpayers' money, are being done throughout the country... dulu, kini dan selamanya?
You deserve the government you voted in, the wisemen used to say. And so writes A Kadir Jasin in his first blog of the year: Tol dan Tarif – Kerajaan Tidak Berdaya?
APAKAH pemerintah, pengguna, pembayar cukai dan pengundi Malaysia begitu tidak berdaya sehingga terpaksa menjadi hamba kepada pemegang-pemegang konsesi kemudahan awam nasional?
Bagi pemerintah, inilah gambaran dan hujah yang disogokkan kepada pengguna, pembayar cukai dan pengundi setiap kali ia mengizinkan kenaikan tol dan tarif oleh pemegang-pemegang konsesi ini.
Alasan yang diucapkan ke sekian kalinya oleh pembesar-pembesar negeri sehingga sudah menjadi klise – kata-kata kosong yang tidak bermakna -- ialah pemerintah tertakluk kepada syarat-syarat perjanjian konsesi.
AKJ also asks whether you, the rakyat, have become terlalu dayus dan terlalu pasif when confronted with issue like this?
'Disclose all toll agreements'
Meanwhile, the Consumers Association of Penang (CAP) has joined in to pressure the government to disclose all its toll agreements with various concessionaires.
CAP president SM Mohamed Idris said the the concession agreement awarded to the LDP was “one-sided and burdened the people.”
“The tax paying rakyat should be in the know of all the terms in any agreement that the government is party to as ultimately it is the rakyat that bears the financial burden," he said.
Screenshots was also informed that PAS Vice President Nasaruddin Mat Isa, DAP Secretary-General Lim Guan Eng, KeADILan President Dr Wan Azizah, PSM Secretary-General S.Arutchelvan, MTUC President Syed Shahrir, Suaram Executive Director Yap Swee Seng and university student leaders will lead an anti-toll protest at Sunway Pyramid at 4.00pm, Sunday January 7.
Comments
Can anyone who knows the legal aspect throw some light on this?
Nobody would agree to such terms given in the normal circumstances. It's beyond human logic to even consider signing such agreement. The fact that it is done, showed abnormality. Can't someone report to the ACA and investigate?
If, there is enough proof, persecute the individuals and hopefully on that ground, null the existing contracts.
The companies can bring the case to court but what are the chances of a company winning against the govt in Malaysia?
Posted by: beagle
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January 6, 2007 11:42 AM
I have said this before, but it is even more relevant and true today:
I am finding it very, very hard to find cause to vote BN in the next General Elections.
There are still some issues with some Opposition parties which count against them.
But, as an example, though I consider that Anwar's previous track record while he was a high-flying BN big-shot still counts against him in my book, weighing the things like the grossly unfair toll concession situation against Anwar's track record puts me in a position where I may now vote for PKR instead of a BN component party's candidate.
Yes, the toll concession contracts were signed while Dr M was PM, but the govt of today under Pak Lah should be seen to be trying to do more to correct the massive lopsidedness for the sake of the rakyat. Not have Samy Vellu spouting his inane and questionable statements. Not just trying to placate suffering motorists with small reductions in road tax which mean practically nothing compared to the massive bite the toll increases are taking out of their pockets.
Take solid action which make a difference! Stop statements which only make me puke!
Posted by: Leithaisor
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January 6, 2007 12:02 PM
The mere thought of giving more balanced politic power distribution is enough for many of us to vote other than BN. I still remember in the last Election when Khir Toyo championed the campaign of 0% opposition in Selangor. They way he mentioned it was like opposition is just weed in your garden which simply an eyesore and need to be eradicated. Now look at what he has done to Selangor...
Posted by: syedhs
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January 6, 2007 01:06 PM
Another legacy from the old man:) Well, I have no right to say anything as I'm not from KL.
JEFF OOI says: Wrong! You have every right to say. Though you don;t use toll expressways in the Klang Valley, Samy Vellu announced the government will utilise RM2.5 bllion -- taxpayers' money from you and I from Perlis to Sabah -- to pay the five concessionaires. Don't get the figure? Just calculate how many Pentium C2D PCs you can buy with RM2.5 billion, and how many container trucks to carry them to your house. The non-KL folks are subdising the KL people -- and the rent seekers who milk the cow. Is that fair?
So I guess WYVIWYG (What you vote is what you get). So long for the Cemerlang, Gemilang & terbilang & the fools that voted them....ha..ha...Happy paying:)
Posted by: PentiumanC2D
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January 6, 2007 01:27 PM
Jeff, I certainly hope your reponse to PentiumanC2D wakes him up and enlightens him at the same time.
If not he will not realise that he is being "screwed" by the government although "he does not live in KL" ..and that's pitiful feeling..getting screwed and not realising it
Posted by: art chan
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January 6, 2007 02:25 PM
Short is our memory but long is the pain now. If we read closely Kit Siang’s statement, in 1987 he raised hell in parliament stating that the letter of intent to UEM “stinks to the skies, and appears to be an even greater scandal than the BMF scandal”. When. he took it to the court and with “six judges in my favour and four against, I still lost, and the people and country also lost “- not just over the UEM case but an important test case on public litigation to hold the government to public accountability for its decisions and actions.
Kit should now do another challenge again as the courts were under cloudy skies then.
The first Prime Minister, Tunku Abdul Rahman had weighed in on the issue in his weekly column, As I See It, writing: “I consider it improper and irregular for a leading political party to make use of its power to amass wealth at the expense of other business ventures” (The Star 24/8/87), with the then Prime Minister, Datuk Seri Dr. Mahathir Mohamad responding: “We agree…but who is going to pay the $360 million for the Umno complex?”
So who is paying now, the urbanized, marginalised affordable car owners and this is the way of making easy money.” We are trapped in these urban jungles and without these tolls we are lost for sure and the government is holding us to ransom. We have NO CHOICE!. Our rights in these toll arrangements have been completely sold out by the government and is being continually practice (see the coming new DUKE Highway for 34 years)
Here we have these political, intellectual white collar robbers working in cahoots to rob the rakyat legally by signing these sorts of concessionary agreements. Are they not of the human kind without any moral conscience or the sense of right and wrong?
When will the breed of politicians be born, not greedy, conscientious and honest, and made every effort for businessmen to invest not only to earn a reasonable return, but to achieve their fortunes by economic means -- through production and trade and create the wealth to share with others
More details from
http://powerpresent.blogspot.com/2007/01/more-pics-ldp-toll-agreement-reveals.html
Posted by: mwt
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January 6, 2007 03:51 PM
The government has the choice of letting Litrak impose the rates specified in the contract or decide on a different rates and pay the difference based on the specified formula. The game plan has always been for the government to fix a low rate and every body is happy.
For some reason, the government has now decided to increase the rates. Samy Vellu as the minister in charged has to do the dirty job. There is a public outcry. The oppositions are having a field day. Litrak is feeling the heat. The parties involved in awarding the contract are keeping silent and no doubt also feeling the heat.
Is this a prelude to something else? It may not be as simple as it seems.
Posted by: Mctx
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January 6, 2007 06:52 PM
Come to think about it, i have an unfair situation I'd like to reflect:
I stay in Kepong and I work in TTDI.
After the toll plaza, I'll take the turn into Penchala Highway (this is because using the LDP way will often be very jam), and exit at the TTDI exit (which doesn't need me to pay for Penchala Highway)
My question is, isn't it unfair for me, since I don't utilise the majority of the journey in between the damansara toll plaza and sunway toll plaza?
And yes, there's no instant toll-free alternative for me.
Posted by: Vertebrato
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January 6, 2007 08:58 PM
Niamah!
Last time during the dry seasons, our Kementerian Engineers are not able to calculate the volume of the water that can stored in the man made dam. Now is so surprise to see that they are over helming with the scientific equation Sigma E = (AT*(2*TV)-TA). Do they really shows that they are improving. Or just to impress the half-pass-six ministers a fool!
Resulting now we have to double our payment for worn and torn old entry yearly. What a great F**K.
Posted by: BaganSPU
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January 6, 2007 10:48 PM
Fomca gesa k’jaan kaji semua perjanjian konsesi
Mkini Dec 15, 06 5:43pm
Gabungan Persatuan Pengguna Malaysia (Fomca) menggesa kerajaan mengkaji semula semua perjanjian konsesi yang berat sebelah supaya kemelaratan pengguna, akibat bebanan pengswastaan, dapat ditangani secara berkesan untuk tempoh jangka panjang.
Sehubungan itu, Setiausaha Agung Fomca, Muhammad Sha’ani Abdullah berkata, kenaikan kadar tol bagi lima lebuhraya di Lembah Kelang mulai 1 Januari ini adalah kesan bebanan yang terpaksa dipikul oleh semua pengguna akibat kelemahan pelaksanaan program pengswastaan.
Fomca juga, katanya, menggesa supaya ditubuhkan sebuah suruhanjaya diraja untuk kajisemula konsesi pengswastaan bagi mengesyorkan kepada kerajaan mengenai kelemahan proses pengswastaan supaya dapat diwujudkan satu mekanisme yang lebih terbuka dan bertanggungjawab.
Selain itu, Fomca juga mahu semua konsesi pengswastaan didedahkan kepada umum selaras dengan janji kerajaan untuk meningkatkan mutu penyampaian perkhidmatan awam, kata Muhammad Sha’ani dalam satu kenyataan hari ini.
Katanya, Fomca juga menggesa diwujudkan sebuah badan kawalselia khas, meliputi wakil-wakil badan bukan kerajaan (NGO) dan badan profesional untuk menentukan segala bentuk piawaian perkhidmatan dan kadar caj berkaitan sistem jalan awam di Malaysia.
Kos sara hidup
Menurutnya, kelemahan pelaksanaan program pengswastaan berlaku kerana penawaran konsesi pengswastaan tanpa bida terbuka serta kerja pembangunan ditawarkan secara runding terus dan tawaran tertutup.
Katanya, penegasan bahawa kadar tol di Malaysia adalah yang terendah merupakan satu alasan yang tidak bermakna kerana tidak berasaskan kepada bandingan kos sarahidup serta juga peraturan lebuhraya bertol di negara lain yang lebih meluas.
Fomca, katanya, menyedari hakikat bahawa sebarang usaha-niaga mestilah memperolehi keuntungan supaya ia berdaya maju dan mendapat dana pinjaman untuk melaksanakan projek awam.
Bagaimanapun, tegasnya, pelaksanaannya amat cenderung ke arah kepentingan pencadang projek daripada mengambil pertimbangan kesannya kepada rakyat dan negara dari segi kos sara hidup dan dayasaing negara di pasaran dunia.
Menurutnya, perkara ini terbukti dengan adanya kajian semula perjanjian dengan Pengeluar Tenaga Bebas (IPP) untuk mengurangkan beban kos yang ditanggung oleh pihak Tenaga Nasional.
Posted by: Jaymee
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January 7, 2007 08:05 AM
a fellow blogger@2020freelunch.blogspot.com and I were privileged to cover Anwar's address last Friday at NUBE's
1ST EXTRAORDINARY DELEGATES COMFERENCE 2005-2008, and I share my post's point on the Tolls from former DPM with your ER~~
ON THE TOLLS OF 20-60% INCCREASE AT FIVE HIGHWAYS IN THE KLANG VALLEY FROM JAN 1, 2007
ANWAR said that he had refused to sign the approvals for the Highway Concessionaires' Agreement during his fading adys as Finance Minister. He informed the 200-plus delegates prsent that he had told told off Works Minister then and now: "Samy, you are working more for the interests of the companies which are given such privatised projects with lucrative benefit. YOU ARE NOT WORKING FOR THE PEOPLE."
(NB: Words close to this effect and the EMPHASIS is Desi's, based on Anwar's tone of voice and the ocasional smirk/smile?)
Anwar described the latest increase of tolls as daylight robbery by BN cronies -- robbing the Malaysian rakyat 365 days a year with no end in sight as long as the BN government remains in power."
PS: I urge Klang Valley residents to lend support to protest by Coalition Against Tolls at LDP toll station Sunday (Jan 7) 4.00pm-- Cheers.
Posted by: desiderata
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January 7, 2007 01:29 PM
art chan,
Now that's what I called a wireless "screwing".
Posted by: beefstew
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January 8, 2007 12:40 AM
The Jalan Kuching toll whch was the first to be removed had its concession increased by 5 years on the promise by Samy Velu that the concessionaire would further improve the highway and Jalan Segambut which passed under the highway at some point.
JEFF OOI says: I was told the Slim River toll was the first to be built and taken down in the 1970's.
Then a couple of years later, the same Samy announced that the concessionaire could not make the necesary improvements as there was not enough land or some other excuse. Anyway, the extended concession period ran its course at the end of which the toll came down. But fact is the concessionaire had a free run for an extended period of 5 years on a promise not delivered. Post Script: Since the end of the concession period, using the people's tax money Samy was able to make enourmous improvements to Jln Kuching and what more, the bottle neck of Jn Segambut removed once and for all with a dual carriage way.
Now with this LITRAK exposure, it makes me wonder if whether the government could be so generous with these Chinese businessmen or whether these Chinese businessmen are happily providing a conduit to UMNO's war chest.
Posted by: Observer
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January 8, 2007 09:22 AM
The taking over assets held by the rakyat by a private company is not confined to highway concessionaires alone. During the tenure of "Iron Mike" as the Menteri besar of selangor was known then, All resevoirs in the state of selangor was handed to Puncak Niaga, who will maintain them and charge every ounce of water that passes through their dams to selangor waterworks, which incidentally, built the resevoirs using taxpayers money. Puncak Niaga now controls Syabas, which recently increased its water rates to the public and was once owned by the state government of selangor. I believe, they did not pay very much as selangor state owed them money for all the water that gushes through their reservoir.
There was the takeover of naval dockyards and Penang shipbuilding by a businessman who is not familiar with ships.
takeover of Pernas by MGO but eventually rescinded as they did not pay for the shares but issued dividends and almost caused the collapse of the group.
The compulsory buying of books published by dewan bahasa dan pustaka for your children. Now you understand why they are against teaching if science and maths in english as their income will be affected.
And many more.
the life of the rakyat is now in the hands of these corporate bigwigs because the government of the day neglected to protect that rakyat.
Under the new regime, I thought life will be defferent. But it looks like there is no will from the boss to make any changes. So the status quo remains.
No tax relief for the privatise projects from BN. on the other hand, it is double taxation as we have to pay similar amounts to the government and another to the privatised projects.
Posted by: sydput
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January 8, 2007 04:03 PM