Concessionaires are raising concerns about the federal government’s involvement in the implementation of the multi-lane free-flow (MLFF) traffic project on private highways. This project aims to facilitate toll collection without requiring vehicles to stop or slow down, using advanced technologies like radio-frequency identification devices (RFID) and automated number plate recognition (ANPR).
Key Points of Concern
- Government’s Role vs. Private Operators’ Autonomy
- Government’s Plan B: Deputy Works Minister Ahmad Maslan announced that the government intends to issue a request for proposal (RFP) to potentially reduce project costs.
- Concessionaires’ Stance: Private highway operators believe they should have the freedom to select the service providers for implementing MLFF on their highways, as they own and manage these assets.
- Cost Implications and Efficiency
- Concessionaires’ View: Operators argue that they can implement the MLFF system more cost-effectively at their own expense. They claim that issuing an RFP and potentially awarding the project to a single company could increase costs and breach existing concession agreements.
- Government’s Rationale: The government believes an RFP could lower project costs, though concessionaires dispute this.
- Previous Agreements and Concerns
- Unilateral Decision: In December, the government reportedly signed an agreement with a company linked to YTL Corporation Bhd for a RM3.46 billion project without consulting concessionaires.
- Objections: Concessionaires have objected to this move, suggesting it could inflate costs by up to 30% and violate their agreements with the government.
- Berjaya Group’s Competing Bid: Earlier in the year, Berjaya Group sought support for a rival bid involving the installation of a barrier-free toll system. The government has assured that no final decision has been made and that concessionaires will be consulted.