We all know that the government has been living beyond the nation's resources, spending on mega projects that do not justify the economic returns.
The EDL is one such project that although very beneficial for motorists does not justify the high costs of construction and now even worse, the method in which the project owners will be rewarded.
The government failed to ensure proper transparency and hence the project cost is estimated to be about double what is the equivalent type of highway project in Malaysia.
Now it is pay-back time and it seems this company has an iron-clad protection against any business risks as the government is going to compensate them for the toll system they did not provide.
At the rate of 60,000 vehicles times the agreed toll of RM6.20 for one way, that's a cool RM720,000 per day!
Now some folks will call that highway robbery and we can only wonder why this EDL was shrouded in such great secrecy. Motorists have been crying FOUL over the previous secret toll deals and even in 2010, they still insist on such shadowy and shady deals.
Don't you think a collection of over RM700,000 per day is a better business deal than getting a bank licence?
I suggest the government should buy back this project after a proper audit that would probably reveal the realistic price tag for the project should be nearer RM700mil and maybe sell it to the public as an IPO and install the overhead gantry collection system; ie no collection at the CIQ.