An independent panel should be formed to assist the government in reviewing and renegotiating all toll concession agreements so as to ensure fairness and reduce overall toll rates of all tolled highways in the long run.

While supporting the Prime Minister’s call to review and reduce the toll increases recently announced, Gerakan President Tan Sri Dr Koh Tsu Koon said that the government’s response has so far been ad hoc, after widespread protests.

A major overall review is very much needed to put public interest in priority and to restore public confidence, in line with the government’s commitment to openness and accountability.

“Such a major review is needed, especially since the recent disclosure to the public of major toll agreements reviewed that these agreements were weighted very much in favour of concessionaire companies, against public interest.”

Citing his own experience in the case of the privatisation of the present Penang Bridge in 1992 – 1993, Dr Koh said that concession companies would always ask for the sky. “It is up to the government to be alert and firm enough to strike a hard bargain in public interest, before signing the agreement.”

Dr Koh said he understood there are problems related to the fact that the government is legally bound by the concession agreements already signed earlier under the previous administration and that the concession companies are public-listed companies.

“However, in the interest of the public, the proposed panel should look into how to overcome such problems and also how to amend the formulae of toll increases to be more reasonable so that concessionaire companies would no longer reap excessive profits at the expense of road users and the public.”

“The panel should also deliberate on various options for the government, eg, to buy back the concessions, or to take over or hold equity with golden share in concessionaire companies, versus the opportunity cost of doing so and alternative use of such funding for the benefit of the people.”