Guan Eng challenges Nor Mohamed to open debate

Minister in the Prime Minister's Department Nor Mohamed Yakcop's latest remarks over the revised deals involving five expressways has prompted Penang Chief Minister Lim Guan Eng to challenge him to a public debate.

Lim (left) was miffed particularly with Nor Mohamed's accusation that Guan Eng had betrayed his double standards on whether the extension of the concession period for two expressways in exchange for a toll hike freeze for five years can benefit the people.

The extension of toll charges on the two expressways include the Penang Bridge by 17 years and Butterworth-Kulim Expressway (BKE) by 11 years.

"I fail to see how this revision deal (has) benefited the people and how I can be practising double-standards when I am taking the principled stand in opposing toll operators benefiting hugely at the people’s expense," said Lim in a statement.

‘Double-standard response"

He was referring to Nor Mohamed's comment in the New Straits Times today which quoted him as saying that Lim practised "double-standards" in opposing the revised deals that will defer toll fare hike for five years until 2016.

Lim rubbished the argument that the revision deal is a win-win situation for the government, toll operator and the rakyat.

"It is clearly a win all solution for the toll operators," he said.

He added that Penangites are "unfairly penalised" despite a five-year toll hike freeze for the Penang Bridge, North-South Expressway, BKE, Linkedua and Elite.

He stressed that Penag Bridge users will have to pay toll for another 17 years, until Dec 12, 2038 instead of 2021, while BKE users will have to pay for another 11 years until the end of 2038 instead of June 6, 2026.

"This is just to allow the five toll operators to defer the toll hike by five years. There is no extension for NSE or Linkedua," he said.

"What is most unconscionable and unfair to the rakyat is that the toll operators are reaping obscenely high profits where they have more than recouped their original investments of the construction cost," he added.

Gov't to save RM6.5 billion

Last month, UEM Group and Employees Provident Fund agreed to a revision of toll concession agreement terms with the government, under which there will be no government compensation or toll increases on four expressways until 2015.

The acquisition of the assets and liabilities of PLUS Expressways Bhd (PEB) by the two companies will supposedly pave way for a better toll deal save the government RM6.5 billion.

Lim, however, has refuted this. According to a written parliamentary reply over toll operators revenue until Dec 31 last year, Lim explained, the construction for NSE was RM 5,945 million but the expressway has received RM 24,266 million in toll receipts and government compensation.

He added that the situation was similar for Penang Bridge, which has collected RM 1,859 million but spent RM 944 million on construction cost, enjoying a surplus of RM 924 million.

Hike remains

For BKE, Lim noted that the toll collection amounts to RM340 million, but construction cost is RM256 million, recording a surplus of RM 84 million.

"And yet, Nor Mohamed claims that this revision deal benefits the rakyat by freezing toll hike, when the toll hike remains but slyly disguised, where its impact is not felt now, but the pain (has been) lengthened for another 17 years for Penang Bridge and 11 years for the BKE.

"If Nor Mohamed is so confident that this revision deal benefits the people, then he should not fear to debate with me so that the people can see how this revision deal benefits them instead of the toll operators," he challenged.