Selangor parking plan to involve local councils, state and private firms
PETALING JAYA : Local councils and a state-owned company, together with a private firm, are reportedly involved in a revised plan for parking fee collections in four cities in Selangor.
State executive councillor Ng Suee Lim said an agreement for a 10-year concession was still being finalised and would only be signed on Aug 1.
The concession for the 'smart parking system' would cover collections of parking fees and enforcement in Petaling Jaya, Subang Jaya, Shah Alam and Selayang.
Ng Suee Lim.
It will now involve the local councils, state-owned Rantaian Mesra Sdn Bhd and a private company.
Last week, Ng was quoted by Bernama as saying that Rantaian Mesra was appointed as the concessionaire, with revenue collected to be split between the company and state government.
However, he said today Rantaian Mesra was not among the 26 companies that responded to a request for proposal, The Edge reported.
Ng said enforcement would still be carried out by local council officers under this plan, while Rantaian Mesra will act as a system coordinator. The private company, which has yet to be appointed, will then handle the daily parking operations of the four local councils, he added.
He said Rantaian Mesra and the other company are expected to invest around RM200 million to develop the infrastructure for the smart parking system.
'The details covering technical, financial, enforcement and governance aspects among the three parties are being finalised, after which the agreement is expected to be signed on Aug 1.
'We are trying to complete the improvements before Aug 1, but if we need more time, we will ask for an extension from the state executive council,' he was quoted as saying.
Ng said the aim of this initiative is to double the amount of parking fees collected, from the current 30% to at least 60%. The local councils are expected to record higher revenue without taking on higher operational costs, he said.
Revenue collected would be shared between the local councils, Rantaian Mesra and the private company; however, he did not reveal a breakdown of the shared revenue.
Under the previous plan, which involved only Rantaian Mesra, Ng said there would be a 50:50 share, of which 40% would go to the councils and 10% to Menteri Besar Incorporated, the investment arm of the state government.
The plan was opposed by several quarters including Selayang MP William Leong, who voiced concern over enforcement powers being privatised and turned into a source of income for a private company.
It later came to light that Rantaian Mesra was wholly owned by Selangor MBI after netizens checked on the company's ownership on the Companies Commission of Malaysia's database.
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