THE concession agreement with Express Rail Link Sdn Bhd (ERL) has been extended another 30 years, Deputy Transport Minister Datuk Abdul Aziz Kaprawi said.
He said the extension was given after the Government denied ERL’s request to increase the fare.
ERL operates and maintains the express train service to the Kuala Lumpur International Airport.
Under the initial agreement, ERL is entitled to a fare review every five years, with the contract scheduled to end in 2029.
“When we didn’t allow it to increase the fare, by right we must compensate them. So, we extended the contract.
“Last year, the Government decided to adopt a new approach – allow ERL to raise the fare but set the ceiling at RM64,” he said.
Aziz revealed that ERL had suffered cumulative losses after tax.
“The ERL suffered losses for six years in a row, from its 2009 financial year until 2014.
“Up until the 2016 financial year, the losses after tax amounted to RM661.24mil.”
Aziz was responding to a question from Tan Sri Khalid Ibrahim (Independent-Bandar Tun Razak), who asked the ministry to reveal the amount paid by Malaysia Airports Holdings Bhd to ERL since 2002.
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