Explain RM70 million in annual payment to highway operator, MP tells government
Advertisement
PUTRAJAYA must explain the RM70 million in annual payment to highway operator Malaysian Resources Corporation Bhd (MRCB) following its decision to end toll collection at the Eastern Dispersal Link (EDL) in Johor, said a DAP lawmaker.
Kulai MP Teo Nie Ching, questioning whether the decision was another bailout by the government, said it was not a secret that MRCB had been trying to dispose of the EDL highway for more than a year due to the cash flow mismatch between its toll collection and debt obligations.
“How did the Finance Ministry arrive at RM70 million per year as the compensation for abolishing toll at the EDL? Especially when MRCB’s profit from the highway was only RM59 million last year,” she said in a press conference at Parliament today.
Second Finance Minister Johari Abdul Ghani had said the compensation for abolishing toll at the EDL was estimated to cost about RM70 million annually.
Teo said according to MRCB’s 2016 Annual Report, the EDL generated RM112 million in revenue, a decrease of 2.6% from the RM115 million in 2015.
She said the report also stated that the segmental profit last year was RM59 million.
She added that the report stated that the total investment cost of the 8.1km highway was RM1.2 billion.
“In 2014, the Barisan Nasional government paid RM62,955,148 to MRCB for the delay in gazetting the toll collection.
“The EDL concession runs for a period of 30 years, ending in 2042. That will make the cash compensation for abolishing toll at EDL a whopping RM1.75 billion.
“
An analyst was quoted by The Star as saying MRCB faced hurdles in selling the highway due to valuation disparities and the debt structure of the asset.
PLUS Malaysia Bhd is said to be one of the interested parties.
“It is, therefore, understandable that MRCB will welcome the announcement by Prime Minister Najib Razak to abolish toll at the EDL.
“