One Lamp Post To Cost Rm686 000

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Folks you must read this. A lamp post is going to cost RM686,000.  

Here is a lamp post manufacturer from China :





The lamp post is USD260 or RM1100. The LED light is US48 or RM200. So total cost is say RM1300 per lamp post. 

Ok now some really stupid news. These folks are stupid to make these bids. Why are these bids stupid? Because they do not bring any value added to these projects and concessions.

The toll highways have all been fully built and are running at peak capacities or near peak capacities. No one in their right mind will or should sell these toll highways to you.

But these bids will work because this is political patronage. The  shareholder is the government and so the deal can be done. 

This is where the stupid comes in.  If the government changes, then these folks can lose their  pants. An incoming government can always impose special taxes, build another road, impose 'conditions' etc. 

This has happened once before. Recall May 9th 2018?

Here is the news :




Halim and partner front-runners for PLUS 
after upping their offer by more than 1/3 

Halim increased offer of RM5.2b by more than 30% 
unclear if extension of existing concession is involved

[Halim] raised his earlier offer,” says the sourceHalim leading race with revised deal

Details scant whether extension of concessions and how much discount on existing tolls
(OSTB :  Simple NPV (net present value) logic says if the price has been increased by 30% and the tolls will be reduced, the concession period has to be extended.  
If Halim can offer 30% higher price, reduce the tolls BUT DO NOT increase the concession (plus the bank debts remain the same) then it also means that Khazanah and EPF are really ripping us off. 
Since public interest is involved and both Khazanah and EPF are public "owned" why not Khazanah / EPF create a "poison pill" by straight away giving the public a 30% discount on tolls and keep everything else the same (including the bank debts).  Because if Halim can do the same, so can Khazanah and EPF. 
But that is not going to happen. The concession period has to be extended. My belief is our grandkids will end up paying toll - beyond 2038. Maybe till 2058 or longer.)
Oct Halim bid to buy Khazanah’s 51% for RM5.2b without extension of concessiondangled discount of 25% on existing toll rates.
PLUS five concessions:
1.  772km NS Hiway, NKVE, Federal Highway Route 2 and PD Highway;2.  Lingkaran Tengah, includes North-South Expressway Central Link;
3.  Malaysia-Singapore Second Crossing;
4.  Butterworth-Kulim Expressway; and
5.  two Penang bridges 

Halim’s offer edges out Widad's RM5.3b  for both Khazanah / EPFWidad sought 20-year extension of concessions offered discounts 25% - 40% on tolls
Maju Holdings bid has enterprise value of RM34.9btoll reductions 25% to 36%extension of PLUS’ concessions
Abu Sahid’s plan also involves lighting up entire NS Expressway for RM5.3 billion
MoF acquiring Gamuda's Shah Alam Expressway, LDP, SPRINT, SMART for RM6.2b
proposal includes congestion charges to be reduced by 30%
My comments : The congestion charges are just crap. It is still toll. If you drive between 11pm and 5am or something like that you get some discounts. More crap. Just insulting the public. Who drives between 11pm and 5am? Visiting mistresses and third wives? 
To digress folks, this is not going anywhere. We have no choice. We have to kick them all out. Dr Mahathir, Pakatan, BN, everyone of them. They must be kicked out. We need totally new thinking.
But here is that RM686,000 lamp post calculation. 
I am just doing this for fun - to show you how stupid they think you are. 
Sadly folks, many of you really are stupid. 
Maju Holdings says that they will light up the whole 772 km NS Highway for RM5.3 BILLION.  This is unbelievable.
Will they be erecting gold plated lampposts? 22 Karat gold plated? 
May I be the gold supplier? My wife and I run a gold jewellery business.
Here is the arithmetic. 
Lets say there is a lamp post every 100 metres. So 1 km will need 10 lamp posts.So 772 km NS Hiway will need 772 x 10 = 7720 lamp posts.
If Maju budgets RM5.3 BILLION for 7720 lampposts that means each lamppost will cost them RM5,300,000,000.00 / 7720 =  RM686, 528.00   !!!
That is the price of a 2 storey terrace house !! For just one lamp post ??
OK lah kasi chan - lets say Maju wants to plant a lamp post every 50 meters.So they will need 15,440 lamp posts, double the number.
So the cost per lamp post is (divide by 2) = RM343,264.00  !!Still gold plated, maybe 20 karat gold.  Or the price of a single storey terrace house in Perak.
We have already seen the Chinese lamp post above. The price of a regular galvanised iron lamp post is say RM1,300. 

If buying in bulk and Made in China it could be cheaper. 
Lets keep one lamp post at RM1,300.  (You can add a little extra for the electric cables).

So if every 100 meters, then it becomes 7720 lamp posts x RM1,300 = RM10.00 MILLION ONLY.
If every 50 meters then it becomes 15,440 lamp posts x RM1,300 = RM20.00 million only.
Where did they get RM5.3 BILLION !!

How did they get the figure of RM5.3 BILLION to light up the 772 km NS Hiway?
RM5.3 B is 260 times RM20m !!  
Then some stretches like  KL Seremban are already lighted up.
Tanjong Malim - KL is already lighted (I think). 
Every intersection or EXIT from JB to Bukit Kayu Hitam is already fully lighted with stadium lights.
Every bridge on the NS Hiway is already fully lighted. 
So how do they get RM5.3 billion to light up the NS Hiway?

Akhir Kalam :  

Did you notice that Halim Saad's bid is now RM5.3 Billion?
And Maju's street lights also cost RM5.3 Billion?
Same figure.
Is that a coincidence?

My info says that both Halim Saad and Abu Sahid worship the same god.
Now that is not a coincidence, ok.

The gist is that the toll roads, particularly the NS Hiway have become a super rich cash cow.  That means you and me paying tolls everyday. 

We are their cash cow. They milk us of our money.

The best part is there is no more or very little capex (capital expenditure).
Jalan semua sudah siap.

Just cut the grass, patch the potholes, keep the rest areas clean and collect the tolls. 

Every year the population and the number of cars keep increasing. 
The money will just keep rolling in.

This is a monopoly situation. There is no other NS Hiway.

That is why all these korporats are running amok trying to get their hands on Plus. 
There is too much money involved.

We do not need all these bids. My suggestion remains. The government just issue special highway bonds for say RM35 Billion.

Take that money and pay off Khazanah / EPF, pay off the bank debts etc. Then remove the tolls and open up all the highways to the public. 

Then pay off those Highway Bonds over 20 years or so from taxpayers funds. 
Both ways the people still pay. 
Pay toll or pay taxes, it is still the people who pay.
There is no difference to us the people.

Let the LLM (Lembaga Lebuhraya Malaysia) run the highways.
Use taxpayers funds for the road maintenance.

(Kepada tuan-tuan yang dunggu, both ways we have to pay. Either we pay toll from our pocket or we pay taxes to the government which they use to build roads, maintain highways, build schools, hospitals etc. Either way WE must pay.)Posted by Syed Akbar Ali 

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