LRT3 PROJECT TO PROCEED AT HALF THE COST

Amount revised to RM16.6b after project is remodelled to fixed-price contract regime

THE government has agreed to continue with the Light Rail Transit Line 3 (LRT3) project but at a lower cost of RM16.6 billion.

This was disclosed by Malaysian Resources Corp Bhd (MRCB) and George Kent (Malaysia) Bhd in separate announcements to Bursa Malaysia yesterday.

The revised cost was nearly half the RM31.65 billion cost announced in July.

MRCB George Kent Sdn Bhd — a joint-venture company formed by MRCB and George Kent — was originally the project delivery partner of LRT3.

The revised amount included land acquisition costs, interests during construction and other costs, said both companies.

“The implementation concept of the project will be remodelled from a project delivery partner regime to a fixed-price contract regime,” they said.

The companies said further announcement would be made as and when there was a material development on the project.

Finance Minister Lim Guan Eng had said in July Prasarana Malaysia Bhd must “drastically” reduce the LRT3 project cost to ensure its viability.

Prasarana had secured a government guarantee for a RM10 billion bond facility to fund the project in 2015. The company had requested for an additional RM22 billion in government guarantee to ensure the completion of the LRT3 project.

The 37km line aims to alleviate traffic congestion along one of the most densely-populated corridors and will connect Klang with Petaling Jaya.