KUALA LUMPUR — Oct. 17, 2018: The government has agreed to continue with the Light Rail Transit Line 3 (LRT3) project at a total cost of RM16.6 billion, including the cost of land acquisition, interests during construction and other costs.
In a filing with Bursa Malaysia today, Malaysian Resources Corp. Bhd (MRCB) said Prasarana Malaysia Berhad had informed the company of the continuation of the infrastructure project via a letter to MRCB George Kent Sdn. Bhd. dated September 16, reported Bernama.
The project’s implementation will be remodelled from a project delivery partner (PDP) regime to a fixed price contract regime. MRCB will make a further announcement to Bursa Malaysia as and when there is a material development.
In 2015, the LRT3 project operator, Prasarana Malaysia, appointed MRCB and George Kent (Malaysia) Berhad as the PDP, with an initial RM9 billion budget for construction work and RM1 billion for land acquisition.
Eralier press reports said that like other construction projects entered into by the previous administration, the viability of LRT3 became a question mark a few months ago when the Ministry of Finance revealed that the projected total cost of the line had ballooned to RM31.65bil.
While the Cabinet had on July 11 approved the continuation of the project, it asked for the cost to be reduced by 47% to RM16.63bil, to include all project costs, including but not limited to work package contracts, land acquisition, project management, consultancy fees, operational and overhead costs and interest during construction.
The 37-kilometre line is a critical project meant to alleviate traffic congestion along one of the most important and densely populated development corridors in the Klang Valley, from Johan Setia in Klang to Bandar Utama, Petaling Jaya. LRT3 is expected to serve a population of 2 million with the capacity to transport 36,700 passengers per hour each way.