Berjaya Will Challenge YTL For MLFF Highway Toll Project - Report
According to a report by Free Malaysia Today (FMT), there may be a new rival to the barrier-free Multi Lane Free Flow (MLFF) tolling system. It was claimed that Berjaya Group is developing a proposal to construct a barrier-free highway system that will be at least 30% less expensive than the current MLFF proposal put forth by a YTL-linked consortium.
In December of last year, 32 toll concession companies collectively opposed the government's direct award of the MLFF project to private companies, specifically YTL Corporation Bhd, without prior consultation.
The Malaysian Highway Authority Concessionaires Association (PSKLM) has raised this issue with the Ministry of Works, sending a formal letter of objection.
According to a source who spoke with FMT, senior Berjaya executives met one-on-one with representatives of the thirty-two concessionaires to solicit input prior to presenting their final proposal to the works ministry. The source purportedly stated that the government is still debating the earlier proposal, and that the Berjaya offer is more appealing.
The report further stated that concessionaires are suggesting that the toll collection company handle revenue leaks that occur when toll booth barriers are removed. This is because the companies do not want to be burdened with tracking down motorists who pass through toll plazas without paying.
Additionally, the concessionaires want the MLFF to be restricted to the main toll plazas in Penang, Johor, and the Klang Valley, where traffic congestion is worst.
Malaysia first intended to put MLFF into effect by 2025. However, it appears that the RM3.46 billion project has encountered a hurdle after it was revealed that highway concessionaires were strongly against the 20-year contract awarded to KJS-SEP Synergy (M) Sdn Bhd, which is affiliated with YTL and goes against their agreements with the government.
Alexander Nanta Linggi, the minister of works, announced that his ministry would review the project after receiving the report. Nanta made it clear that the 2021 contract was only approved to allow the parties to begin the negotiation process.
While the prime minister, Anwar Ibrahim added that the MLFF project must follow the correct procedures and be transparent. He stated that the government would need to take another look at the alleged MLFF agreement made in 2021.
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