On Tuesday, deputy works minister Ahmad Maslan told the Dewan Rakyat that the federal government intends to issue a request for proposal (RFP) as its “Plan B”, with the aim of reducing the project’s cost.

Concessionaires agree that Putrajaya has every right to issue an RFP for highways it owns, the source told FMT. However, they say privately-owned highway operators should be at liberty to select the firms they wish to engage to implement the convenience.

The MLFF system involves the collection of toll charges at specific points along a highway without need for vehicles to stop or slow down.

One source said most private concessionaires are keen to engage service providers who use cutting-edge technology such as radio-frequency identification devices (RFID) and automated number plate recognition (ANPR).

Of the 33 highways in the country, only seven are fully owned by the government, directly or indirectly, while the rest are owned and built by private entities.

“It’s puzzling why the government needs to call for an RFP when it’s the concessionaires’ obligation to sign contracts with the service provider,” a source told FMT, adding that the concessionaires are prepared to implement the MLFF system at their own cost.

“It is clear that the concessionaires are against any plan to give the project to a single company as the firm would then be given a long-term concession on toll collections. This would breach the existing concession agreements,” he said.

Another source disputed the suggestion that awarding the MLFF project via an RFP would bring down its costs.

“The cost-effective way will be for the concessionaires to convert toll plazas to the MLFF system at their own expense when they sign agreements with service providers for toll collection,” he said.

Last December, FMT reported that the government had signed an “appointment agreement” with a company linked to YTL Corporation Bhd, awarding the RM3.46 billion project without consulting concessionaires who would eventually be expected to foot the bill.

The concessionaires, however, took the view that the cost of the project could be cut by up to 30% if each company is allowed to build and implement its own MLFF system.

In a letter of objection to the works ministry, the concessionaires said the move would violate their individual agreements with the government.

In February this year, FMT reported that Berjaya Group was seeking support from highway concessionaires for a competing bid which would involve the installation of a barrier-free system at toll plazas.

In response, the government said the award had not been finalised and assured concessionaires that they will be consulted before any decision is made.