We Ve Renegotiated Mrt2 What About Tolls

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TK Chua, FMT
I think Malaysians in general must have been happy that the new government was able to reduce the cost of the MRT2 project by RM8.82 billion although that meant the project was “scaled-down”.
Earlier, MMC-Gamuda reduced the “above ground” contract by RM5.22 billion. With the latest reduction on the “underground” contract by RM3.6 billion, the total cost saving came to RM8.82 billion.
RM8.82 billion or RM8,830 million is a lot of money. If a general hospital or a public university costs one billion each, the saving alone could have built us almost nine hospitals or universities.
While we are happy that the new government was able to extract so much saving from the contractors, have we not, at the same time, wondered about the bidding and tendering process practised in the past?
If there was no new government, would RM8.82 billion represent extra profits to MMC-Gamuda or part of the payoff to some corrupted politicians or officials? Either way, the number is colossal and disturbing.
This is just one project which the new government has the opportunity to renegotiate. But what about other projects presently underway and also those projects that were completed earlier but were overpriced.
Whether we like it or not, tolls and other tariffs are ultimately determined by cost, real or artificially escalated or imputed.
I am grateful that the new government has done a lot for us. But I want it to do more.
I believe some companies and individuals have benefited too much in the past from the stupidity or the corruption of those in power. The experience of the MRT2 project has given us enough indication and justification to renegotiate many of the toll rates and other tariffs in the country.
People are not expecting the total removal of tolls. But we are quite sure toll rates can be reduced across the board, and not offered crap like off-peak discounts or discount given during festive seasons as being proposed or practised presently.
Please don’t tell us it is difficult to accomplish all this. Sometimes we just need to assign the right people to negotiate with all the concessionaires.
 

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