LGE: LRT3 TO COST RM31.45 BILLION DUE TO POOR MANAGEMENT
Cost must be cut for project to be feasible, says Lim
FINANCE Minister Lim Guan Eng estimated the cost of the Light Rail Transit 3 (LRT3) at RM31.45 billion, attributing the cost to Prasarana Malaysia Bhd’s poor management.
He said the ministry told Prasarana to reduce the cost drastically so that LRT3 would be feasible and cost-effective.
“Some news reports have indicated that LRT3’s cost can be reduced by RM6 billion. The ministry wishes to state that more than RM6 billion must be reduced if the LRT3 project is to proceed.”
He said Prasarana had previously secured a government guarantee for a RM10 billion bond facility to fund the project in 2015.
“However, on March 30, 2018, Prasarana requested for an additional RM22 billion in government guarantee to ensure funding for the construction and completion of the LRT3 project.
“The Finance Ministry has requested Prasarana to drastically review the cost of the project to ensure its viability.”
He said the ministry would not support any additional funding for the project unless the cost was rationalised without compromising on the integrity of the rail network as well as safety and quality of service.
He said the 37km project was a critical one meant to alleviate congestion along one of the most important and densely populated economic development corridors in the Klang Valley — from Klang to Petaling Jaya.
LRT3 is expected to serve two million people, with the capacity to transport 36,700 passengers per hour each way.