Malaysia
Early termination clause, public benefit among preconditions for Kidex, says Khalid
Selangor Mentri Besar, Tan Sri Khalid Ibrahim at PKR headquarters in Merchant Square, Damansara, on June 10, 2014. u00e2u20acu201d Picture by Yusof Mat Isa

SHAH ALAM, June 25 ― Kidex Sdn Bhd and the Malaysian Highway Authority had agreed to several preconditions before the Selangor state government gave a preliminary approval for the Kinrara-Damansara Expressway, state Mentri Besar Tan Sri Khalid Ibrahim said today.

Speaking to reporters, he listed public benefit and an early termination clause as some of the preconditions.

“We put in an early termination clause. If the concessionaire (Kidex Sdn Bhd) achieves its projected profits for the project sooner than when the concession period is supposed to end, therefore the concession agreement must be terminated earlier,” he said.

“The projected profit by concessionaires are through tolls, through the amount of traffic...if the concession period is 30 years and the traffic increases from 15 per cent to 35 per cent, this would mean more profit,” Khalid added.

Other conditions set by the state government was that the project had to benefit the people of Selangor, and not the concessionaire, he added.

Khalid was able to give the details after declassifying minutes of a meeting on February 15, 2012, at which the state government had principally approved a proposal to build the Kidex highway.

“The state government’s stand is that privatisation must prioritise the interests of the Malaysian public and Selangor as it involves taxpayers’ money,” he said, reading excerpts of the meeting minutes to the press.

The minutes was made public in response to an application made by Petaling Jaya resident Chia Gek Suan on June 4 to declassify the document under the state's Freedom of Information (FOI) Act.

The Kidex project has been rejected on three occasions by the city council as developers had failed to provide sufficient details.

Under Section 18 of the Town Country and Planning Act (TCPA), construction cannot start unless the highway fits with MBPJ’s plans.

Kidex is currently not incorporated into the council’s blueprint for Petaling Jaya city.

Despite the growing opposition, mounting evidence in the form of replies in Parliament and the state legislative assembly indicate that the project is set to proceed.

Among the areas that could be affected by the project are Tropicana Mall, SS2 Mall, Rothman’s traffic lights, Section 14, Amcorp Mall, Hilton Petaling Jaya, Tun Hussein Onn Eye Hospital, Jalan Templer roundabout, Taman Datuk Harun, Taman Medan Baru and Bandar Kinrara.

Construction of the multi-billion-ringgit highway could begin as soon as next year and be completed by 2018.

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