Govt may take over highways

Govt may take over highways

22-05-2008
by Kevin Tan

KUALA LUMPUR: The government is mulling the option of taking over highway concessions from private operators as part of its efforts to reduce the burden of toll on the people, said Works Minister Datuk Mohd Zin Mohamed.

On May 7, the government announced that it would revisit the agreements with highway concessionaires with the possibility of reducing toll rates.

Winding up the debate on the motion of thanks on the royal address in the Dewan Rakyat yesterday, Mohd Zin said his ministry would need about three months to study the matter in a comprehensive and holistic manner.

“The suggestion to take over toll highways requires a detailed study. A committee at the ministerial level headed by Malaysian Highway Board (LLM) chairman has been formed to study this proposal,” he added.

The minister was responding to suggestions from Datuk Bung Mokhtar Radin (Kinabatangan-BN) and Loke Siew Fook (Rasah-DAP) for the government to take over toll highways.

Mohd Zin also said his ministry would require up to three months to consider the matter before reverting to parliament as the issue of taking over toll highways would involve 22 concessionaires.

On traffic congestion at the Seremban exit of the Kuala Lumpur-Seremban highway that was due to it having only two lanes, the minister said he would instruct LLM to study and find a way to resolve the matter.

Responding to a question from Mahfuz Omar (Pokok Sena-PAS), he revealed that the ministry had a policy of distributing 10% of the total project value under its purview in the Ninth Malaysia Plan to Class F contractors.

“This policy will only be applicable for projects above RM10 million,” Mohd Zin said, adding that the list of Class F contractors given to the lead contractor were those approved by the Construction Industry Development Board (CIDB).

He also said the lead contractor would then appoint and monitor the work of these Class F contractors.

“Until May this year, there are 31 projects worth RM2.18 billion, which are approved for the distribution of 10% of project value to Class F contractors,” he added.

The minister said lead contractors for these projects had appointed 1,015 Class F contractors.

According to him, there were about 17,000 Class F contractors in Malaysia and his ministry had advised big contractors who got projects of above RM10 million to distribute at least 10% of these to small contractors.

Mohd Zin also revealed that the state with the most Class F contractors was Terengganu with 351 individuals, followed by Negeri Sembilan (123), Sabah (100) and Selangor (62).

“We hope small contractors can gain more experience and guidance from lead contractors by participating in mega projects. The implementation of this policy will be monitored by the ministry’s bumiputera development division,” he said.

On the award of the National Palace project to Syarikat Maya Maju Sdn Bhd, the minister said the project was valued at RM649 million and works had started in November last year.

He explained that the company had been registered with CIDB in the Class G7 category and was given exemption from the requirement to register with ministry’s contractor service centre

“The project now is 10% completed and full completion is expected on Nov 29, 2010,” he said.

Mohd Zin also said the project was awarded to Syarikat Maya Maju based on direct negotiation because the government reckoned this would give the “best results” as the National Palace renovation would require a high degree of expertise.

He also pointed out that the government placed a high priority on “value engineering” despite not having open tender for certain projects.

However, Khalid Abdul Samad (Shah Alam-PAS) said he could not see how direct negotiations could give the best value for government projects.

“It is better if there is open tender. Justice must not only be done but must be seen done,” he added.