‘Explain hike in cost’

GEORGE TOWN: MCA has asked the state government to explain why the proposed Penang light rail transit (LRT) project costs higher than the Klang Valley’s LRT3 project.

State MCA Youth chairman Datuk Michael Lee Beng Seng said based on state Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow’s explanation, the Penang LRT project cost was RM8.4 billion for 30km.

Lee said in May last year, it was reported that the cost of the project was RM7 billion.

“Therefore, this sudden increase of RM1.4 billion is surprising.

“As the LRT project is fully elevated, the price tag of RM 280 million per km seems to be more expensive on a cost per km basis when compared with the LRT3 project in the Klang Valley,” he said yesterday.

Lee, who is MCA Youth treasurer-general, said the LRT3 was 37km long and included a costly 2km underground tunnel section and an underground station.

“Despite this, the cost of the LRT3 is RM9 billion or about RM243 million per km,” he said.

Lee said Chow had on Wednesday said that the Penang government had approved RM17 billion of the RM46 billion Penang Transport Master Plan (PTMP) project.

“He (Chow) had explained that this RM17 billion is for the LRT project and the Pan Island Link 1 (PIL1) road project, which suggests the cost PIL1 is RM8.6 billion. As PIL1 is just 19.5km in length, this means the cost per km is RM441 million per km.

“I request the Penang government to provide proper cost breakdowns and explain the increase in price for the LRT project.”

Lee questioned how much the state needed to borrow to pay for the projects considering the state’s reserve was only RM1.45 billion.