KUALA LUMPUR (July 30): The Ministry of Works has proposed allowing highway concessionaires to implement the multi-lane free flow (MLFF) toll collection system through a business-to-business (B2B) model, according to the latest report by the Public Accounts Committee (PAC).

This comes after KJS-SEP Synergy, which was appointed to develop a proposal for a barrierless toll system across 33 highways nationwide, failed to reach an agreement with the highway concessionaires by Dec 16 last year, due to resistance from the industry.

“Under this [B2B] model, the concession companies can invite any firm and issue a request for proposal (RFP) to carry out the project. That is what we have proposed to the Cabinet,” Datuk Seri Azman Ibrahim, the secretary general of the Works Ministry, was quoted as saying during a PAC proceeding held on May 20 this year.

He also stated that the government will not proceed with the previously proposed model of implementing “concessions on top of concessions” for the MLFF system.

“We are proposing a B2B approach, and it will be up to the concessionaires. Whether they choose to appoint a company directly or collaborate with others, it is entirely their decision,” he said.

“They could even set up a special purpose vehicle (SPV) to help implement the project — there are many options. We will leave it to the concessionaires to decide.”

The PAC report said Azman confirmed that the appointment of KJS-SEP Synergy had lapsed last year, after it failed to secure agreement from the highway concessionaires.

Nevertheless, Azman stressed that the ministry’s principle is that any MLFF implementation must be fully carried out by the concessionaires, without government involvement.

He also emphasised that there must be no increase in toll rates as a result of the MLFF implementation.

The proposed MLFF system, estimated to cost over RM3 billion nationwide, aims to replace the current booth-based toll collection system across 33 highways in the country, with overhead gantries using radio-frequency identification (RFID) technology and automated number plate recognition using cameras.

PAC had previously flagged that the appointment letter for the joint venture between Konsortium Jaringan Selangor Sdn Bhd (KJS) and SEP Synergy (M) Sdn Bhd conflicted with existing concession agreements that grant exclusive toll collection rights to highway concessionaires.

KJS, a subsidiary of YTL Power International Bhd (KL:YTLPOWR), holds a 60% stake in the joint venture, while the remaining 40% is owned by SEP Synergy.

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