Wednesday, December 20, 2006

I'm talking about it now.

I have a question. Why the increase in toll prices? It seems like no one really knows.

Let me try to understand the situation now. The government hires a company to make the highway. So in the agreement, the company gets the government to promise that a certain amount of cars will use that highway, thus covering cost for the company. And less the required number be met, the government would have to pay a penalty for breach of service level agreement? Am I right so far? Please correct me if I'm wrong.

So now, the increase in toll prices is the government transferring that penalty to the drivers?? Those that mean that the service levels have not been met? That the numbers have not been met? That there aren't enough cars using LDP and the others?

Hmm, wouldn't increasing the prices cause the number of the highway users to be LESS, and thus NEVER meeting the service level agreement?

More & more Malaysians own cars. And with places like Kepong & Bandar Utama developing into commercial paradises, there still aren't enough cars passing through LDP? That is very surprising...

Hmm, correct me if i'm wrong, but isn't most government money the tax payers' money? So since a part of those money is already being used to pay the penalties, what will the extra money from the toll hike pay for?

So many questions... Can someone provide me some light on this matter?

1 comment:

Anonymous said...

It's a toughie, and I believe that debates will remain inconclusive. Money needs to be channeled in for better public transportations instead of sending an astronut to space...which is supposedly "free"...