news

Finance minister: Prasarana has to slash more than RM6b for LRT3

Lim Guan Eng

KUALA LUMPUR (July 10): The Ministry of Finance will not provide additional funding for the Light Rait Transit 3 (LRT3) project unless cost “is significantly rationalised without compromising on the integrity of the rail network as well as the safety and the quality of service provided,” finance minister Lim Guan Eng (pictured) said in a press release today.

“However, the projected total cost of LRT3 of RM31.45 billion due to poor management by Prasarana Malaysia Bhd requires drastic cost reductions to make the LRT3 feasible and cost-effective.

“Certain news reports have indicated that the LRT3 cost can be reduced by RM6 billion. The Ministry of Finance wishes to state that much more than RM6 billion must be reduced if the LRT3 project is to proceed,” Lim said.

“Prasarana Malaysia has previously secured a government guarantee for a RM10 billion bond facility to fund the project in 2015.

“However, on 30 March 2018, Prasarana has requested for an additional RM22 billion in government guarantee to ensure funding for the construction and completion of the LRT3 project.

“The Ministry of Finance has already requested Prasarana to drastically review the cost of the project to ensure its viability,” Lim explained.

The Star reported today that almost RM6 billion can be shaved from the cost of the LRT3 project if it follows the original design.

The changes made to the initial plans for the 37km-track, which runs from Bandar Utama to Klang, include adding more stations and increasing the number of cars per train to six from four.

The LRT3 project is an important project meant to alleviate traffic congestion along one of the most important and densely populated economic development corridor in the Klang Valley, from Klang to Petaling Jaya.

The line is expected to serve a two-million KLang Vally residents with the capacity to carry 36,700 passengers per hour each way.

Like our content? Check out Narratives – where we curate stories based on topics to keep you well and broadly informed about Malaysian real estate.

Looking for property? Check out Location Scan, where we summarize all available options and facts you need in a few clicks. We have updated the tool to include MRT3 stations too.

Curious how much you can borrow? Use LoanCheck to get your maximum loan eligibility from various banks, or LoanReport to get a FREE CTOS/CCRIS credit report.
SHARE
RELATED POSTS
  1. MoF to raise up to RM50b to fund MRT3
  2. Guan Eng’s law firm made ‘big mistake’ when evaluating Penang undersea tunnel preliminary agreement — witness
  3. Nov 16 fixed for decision on Guan Eng’s bid to move undersea tunnel graft case to High Court