CABINET NOD FOR PENANG LRT PROJECT
Federal govt taking over Mutiara line project, considering various funding options, says Loke
THE cabinet approved the Penang light rail transit (LRT) project at a meeting on March 22. Transport Minister Anthony Loke said the decision meant that the federal government would take over the Penang LRT Mutiara line project from the state government.
He said construction of the Mutiara line was slated to start this year, and was expected to be completed in 2030.
Loke said that various funding methods, including development allocation, would be considered by the government.
He said the government had appointed Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), which is owned by the Ministry of Finance Incorporated, as the project developer and asset owner.
“The contract for civil construction for Segment 1, from Silicon Island to Komtar, was awarded to SRS Consortium Sdn Bhd (SRS) through the single-sourcing request for proposal mechanism.
“This offer is based on the request of the Penang government, which had appointed SRS as the project delivery partner for the Penang Transport Master Plan, including the Mutiara line, through an open tender in August 2015.
“SRS has conducted technical studies and studied preliminary designs, in addition to obtaining approvals for the Environmental Impact Assessment, Social Impact Assessment, and the conditional railway scheme,” he said yesterday.
He said SRS Consortium had funded the initial studies.
Loke said the contract details and project value were being negotiated between MRT Corp and SRS, with a deadline of six months for finalisation.
He said the contract for civil construction for Segment 2, from Komtar to Penang Sentral, was through an open tender.
He said turnkey contracts for systems and rolling stock would take a build-maintain-transfer approach via open tender.
He said the rolling stock operations depot would be planned and built together with the integrated transit-oriented development in Tapak Pesta, Sungai Nibong, through a collaboration between MRT Corp and the Penang government.
This new strategy, Loke said, aimed to generate additional non-fare revenue crucial for future maintenance of the Penang LRT.
“Among the conditions for the federal government to take over this project is that the reclamation project needs to be reduced because previously there were three islands that needed to be added. The federal government has requested reclamation of only one island.”
The Mutiara line route will stretch from Silicon Island to Komtar, then onward to Penang Sentral in Seberang Prai, connecting with the existing KTM Komuter and ETS railway networks.
Loke said : “I believe this project will not only benefit Penang residents but also facilitate the daily commute of workers from Perlis, Kedah and northern Perak.
“The Penang LRT is a commitment by the government to develop public transport infrastructure not only in the Klang Valley, but also in other regions and states for the wellbeing of the people,” he said.
Loke also gave his assurance that the Penang LRT project would not jeopardise George Town’s status as a United Nations Educational, Scientific and Cultural Organisation’s world heritage site.
On whether the government would implement a congestion tax or limit the entry of vehicles into Penang with the implementation of the LRT project, Loke said it was not discussed.
“Let’s finish building this first. There are six years left. It is not like it (the project) will be completed by tomorrow.