Tuesday, January 31, 2012

Declassify contract extension agreement

The government has been urged to buy back highways that have generated huge profits.
Source: http://www.nst.com.my/streets/central/declassify-contract-extension-agreement-1.27387 (By Sarah Rahim, 4/1/2012)
Segambut member of parliament Lim Lip Eng has requested the government to declassify an agreement for Duke Expressway's proposed concession contract extension.
The extension is being considered from 2040 to 2069. "It should be done to allow for expert review and to safeguard public interest," Lim said. Under the current agreement, toll collections will stop by 2039. Lim opposes the extension as he believes the government can bear the proposed cost of RM1.392 billion for Duke Expressway's upgrade and extension works. "The government has spent up to RM250 million of public funds on the National Feedlot Corporation cattle project. The proposed cost for Duke is about 5.5 times higher than that."
He also showed copies of documents from the Prime Minister's Department on the proposed upgrade and extension works.
There are three proposed extensions -- a 7.1-km stretch from Sungai Buloh to Segambut, a 9-km addition from Jalan Tun Razak to Gombak and a 5.2-km expressway from Kuala Lumpur to a new Metropolis project.
Moreover, Lim informed that the new Metropolis project is yet to materialise. He also revealed that, previously, the Democratic Action Party had suggested that the government buy back highways that have generated huge profits. "On Duke Expressway, the owners should take into consideration their corporate social responsibility." Lim said the government should also come up with a plan to counter potential job losses due to the non-extension of the concession contract.
On Nov 10 last year, Lim asked for a clarification on the contract extension from the Works Ministry during a parliamentary session.
"Until today (Jan 2), I am still waiting for a written answer," he said.


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