THE planned Aug 1 rollout of Selangor’s on-street parking privatisation exercise may be delayed if parties fail to agree on the terms.
State local government and tourism committee chairman Datuk Ng Suee Lim said the privatisation under Selangor’s Intelligent Parking (SIP) initiative hinges on final consent from all involved parties, including the four local councils involved in the first phase.
While an in-principle agreement was in place, he said the finalisation of key details such as revenue sharing and contract duration was still underway and could delay the plan.
“We are currently finalising all the details.
“The Selangor state executive council may request a delay in implementation if certain parties are not agreeable to specific details,” he said.
The four local councils (PBTs) involved in the first phase are Petaling Jaya City Council (MBPJ), Subang Jaya City Council (MBSJ), Shah Alam City Council (MBSA) and Selayang Municipal Council (MPS).
Ng was speaking at a press conference to address concerns regarding Selangor’s move to privatise on-street parking fee collection, enforcement and management under the SIP initiative.
He said the tripartite agreement involved the PBTs as the policy-setters, Menteri Besar Incorporated’s (MBI) subsidiary Rantaian Mesra Sdn Bhd as the system coordinator and a private concessionaire as the system operator.
“The agreement will streamline and centralise the on-street parking system across all PBTs in Selangor,” he said.
Ng added that the move was in line with the Local Government Act 1976 (Act 171).
“The implementation of on-street parking management through a concessionaire is not new in Selangor, as it has been used since 1996.
“As of June, five PBTs, including MBSA and MPS, still use the concession method,” said Ng, without explaining the difference between the SIP and the current concession agreements.
He said that under the new agreement, enforcement would remain under local council jurisdiction, while the concessionaire would pay the salaries of enforcement officers and handle operational costs.
“Parking revenue will be distributed between the PBTs, Rantaian Mesra and the concessionaire based on an agreed model.
“PBTs will not bear any operational costs and can expect higher long-term revenue.”
He said the concessionaire would invest RM200mil in infrastructure for SIP, including installing about 1,800 CCTV cameras across the first phase’s four local councils’ jurisdiction.
He acknowledged that the local councils might initially see a dip in revenue, but were projected to benefit significantly after three years.
Also present at the press conference at the State Secretariat building in Shah Alam were MBI Selangor general manager Mohd Ramali Abu Bakar and Selangor Deputy State Secretary (Development) Datuk Johary Anuar.
At an earlier event that day, Selangor Mentri Besar Datuk Seri Amirudin Shari had said that he would review the SIP initiative.
“I will look into this again since the issue has been brought up,” he said, confirming that Ng’s statement on the privatisation of on-street parking were accurate.
Amirudin said the state had received 26 Requests for Proposal by interested parties for the SIP and that MBI Selangor, which would oversee the concessionaire’s performance, would prioritise the state’s interest.
“We do not want to award it to just any party.
“In the past, some private operators were effective in collecting parking fees, while others were not,” he said.
