The halving of toll charges for Cheras-Kajang Highway comes with a hefty price tag - RM120.55 million in government compensation and a 15-year extension to the concession agreement.
This was revealed by Works Minister Shaziman Abu Mansor (above) in Parliament yesterday, in reply to a question by Serdang MP Teo Nie Ching.
The minister also said that concessionaire Grand Saga Sdn Bhd has agreed not to raise toll charges for another three years. Effectively, Grand Saga will be allowed to collect toll until 2045.
In addition to slashing the toll rate from RM3.80 to RM1.90, Prime Minister Najib Abdul Razak had announced the abolition of toll collection at two booths along the highway on March 1, amidst much fanfare.
Longer toll payments 'not justified'
Met later, Teo said the extension of the concession agreement cannot be justified as Grand Saga has profited handsomely from toll collections since 1999.
"When Najib made the announcement on March 1, he was fooling the public. He did not mention about the new agreement," she said.
"We had to wait until Parliament convened before we could find out, and put the works minister on a spot.
"This is Najib's election play. He will throw a few bones without explaining what is really happening behind the scenes.
"All this is a result of a lopsided concession agreement. Our future generations will bear the brunt."