Highway Concessionaires Object to KJS-SEP Synergy Being Awarded MLFF Project

According to Free Malaysia Today, 32 highway toll concessionaires have expressed their opposition to the government's decision to directly award a private company the multi-lane free flow (MLFF) project for all highways in the country. The MLFF system aims to convert all highway entry and exit points into barrier-free lanes in order to reduce congestion and improve traffic flow.

On November 17, a "appointment agreement" was signed between the government and a YTL Corporation Bhd-linked company, granting the RM3.46 billion project without consulting the concessionaires who will ultimately bear the financial burden, according to informed sources.

The Association of Highway Concessionaires Malaysia (PSKLM) reportedly objected to the government offering KJS-SEP Synergy (M) Sdn Bhd a 20-year concession, claiming that it violated their individual agreements with the government.

According to one source, the government intends to finalise the appointment without the consent of the concessionaires, who have not been provided with details on the terms of the appointment.

PSKLM, which represents 18 companies, expressed its concerns in an official letter signed by all members. They claim that allowing individual companies to build and implement the MLFF system independently could reduce the estimated cost of RM3.46 billion by 30%.

Furthermore, critics are questioning the direct award, pointing out the chosen company's lack of industry experience and the absence of a cost-benefit analysis. They are also concerned about potential integrity issues arising from KJS-SEP's takeover of current toll operations and validation processes, as it controls the entire process without checks and balances.

PSKLM predicts an increase in toll violators and issues such as illegal car plate numbers and tailgating, impacting toll revenue impairing their ability to service debts. The association urges the government not to proceed with the award, citing serious implications for current concessionaires.

Source: Free Malaysia Today