KUALA LUMPUR – The cancellation of the Petaling Jaya Dispersal Link (PJD Link) Highway will cost taxpayers in excess of RM20 million.
Highly placed sources tell Scoop that the final bill could even balloon to over RM100 million as the concessionaire has incurred costs for various feasibility studies and approvals since 2016.
The cabinet had on Wednesday decided to pull the plug on the highway project due to heavy and persistent opposition towards it, largely on the part of more affluent neighbourhoods in Petaling Jaya.
However, in recent months, there has also been vocal support for the project from nearby communities in Taman Medan, Kinrara, Kampung Kayu Ara, and Kampung Melayu Petaling Jaya.
Business groups, including Bumiputera contractors, had also voiced support for the RM4.4 billion project, which was estimated to create around 12,000 jobs.
“The argument for higher compensation for PJD Link Sdn Bhd is sound, as it has already received the necessary go-ahead consistent with a final approval from the authorities,” said the source.
He was referring to the Environment Impact Assessment (EIA), Traffic Impact Assessment (TIA), and Social Impact Assessment (SIA), which gave the green light for the elevated highway project to proceed.
In announcing its decision, the cabinet had said that the contractors did not fulfil six of the 11 stipulated conditions.
In response, PJD Link Sdn Bhd said these were due to the Conditions Precedent (CP), which had taken longer than expected due to the complexities of the project.
Meanwhile, another source said the case for compensation is strong as this was a government project with the Works Ministry as the principal owner.
The main impetus for the project was to ease congestion in Petaling Jaya via an elevated connection between Kinrara and Damansara Utama.
“The requirement for this connection is still there,” the source added.
The Selangor government had initially requested that PJD Link Sdn Bhd review the alignment to appease opponents of the highway.
PJD Link Sdn Bhd said yesterday that it believed that the highway was a viable project with long-term socioeconomic benefits.
Last year, it signed an agreement with MCC Overseas (M) Sdn Bhd for project financing in the amount of RM922 million.
“This was a project that was meant to be wholly financed by the private sector. With the cancellation, taxpayers will be footing the cost to compensate the contractors,” the source added. – April 19, 2024