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M'sia drops second highway plan
Sat, Oct 18, 2008
The New Straits Times
>SEPANG, Malaysia: The plan to build a second highway to reduce the traffic load on the Damansara-Puchong Highway (LDP) has been scrapped, barely a week after its announcement.

Works Minister Datuk Mohd Zin Mohamed said the highway could cost RM2 billion (S$840 million) and the government felt it was better to work on other solutions to end traffic woes on the LDP, including an extension of the Putra Light Rail Transit network to cover the LDP route.

Also, the concessionaire of the LDP, Lingkaran Trans Kota Holdings (Litrak) Bhd, would be asked to work on improving the highway.

Asked if it was feasible for the government to take over the LDP from Litrak, Zin said it was out of the question as this would cost the government RM12 billion. The concession for the 40km highway runs out in 2029.

He said that under the highway's concession agreement, once the capacity threshold level for the highway was reached, revenues generated from the LDP would have to be shared with the government.

"The threshold level remains a question mark and so far there has not been any revenue sharing."

Since 1999, the government has paid compensation of up to RM625 million to the LDP's owner for capping the toll charges.


 

 
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