MoF to stop fund­ing LRT3 un­less cost falls dras­ti­cally

The Borneo Post (Sabah) - - BUSINESS -

KUALA LUMPUR: The Min­istry of Fi­nance (MoF) will not sup­port any ad­di­tional fund­ing re­quired for the Light Rail Tran­sit Line 3 (LRT3) un­less the cost is “sig­nif­i­cantly ra­tio­nalised” with­out com­pro­mis­ing the rail net­work’s in­tegrity, safety and ser­vice qual­ity.

In a state­ment yes­ter­day, Fi­nance Min­is­ter Lim Guan Eng said the min­istry had re­quested project owner Prasarana Malaysia Bhd to dras­ti­cally re­view the cost to en­sure its vi­a­bil­ity.

“The pro­jected to­tal cost of RM31.45 bil­lion, due to poor man­age­ment by Prasarana Malaysia, re­quires dras­tic re­duc­tions to make LRT3 fea­si­ble and cost-ef­fec­tive,” he said.

In 2015, Prasarana Malaysia se­cured a gov­ern­ment guar­an­tee for a RM10 bil­lion bond fa­cil­ity to fund the project.

How­ever, the com­pany re­quested an ad­di­tional RM22 bil­lion in gov­ern­ment guar­an­tee on March 30 this year to en­sure fund­ing for the project’s con­struc­tion and com­ple­tion, Lim said.

The min­is­ter said cer­tain news re­ports had in­di­cated that the cost could be slashed by RM6 bil­lion.

“The MoF wishes to state that much more than RM6 bil­lion must be re­duced if the LRT3 project is to pro­ceed,” he added. - Ber­nama

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