PETALING JAYA: The Finance Ministry said it will not support additional funding for the 37km Light Rail Transit Line 3 (LRT3) unless Prasarana Malaysia Bhd cuts the cost of the project which, it is forecast, could soar to as high as RM31.45 billion.
According to previous news reports, the cost of LRT3 was to have been capped at RM9 billion.
On March 30, 2018, Prasarana requested an additional RM22 billion in government guarantee to ensure funding for the construction and completion of LRT3. This was on top of a RM10 billion bond facility guaranteed by the government in 2015.
"The projected total cost of LRT3 of RM31.45 billion due to poor management by Prasarana requires drastic cost reductions to make the LRT3 feasible and cost effective. Certain news reports have indicated that the LRT3 can be reduced by RM6 billion.
A local daily reported on Monday that Prasarana might consider taking over the construction of LRT3 from its project delivery partner Malaysian Resources Corp Bhd (MRCB) and George Kent (M) Bhd after the project's bill increased to more than RM15 billion.
The two companies were appointed as PDP for the project in 2015 at an approved construction budget of RM9 billion.
As at August 2017, a total of 11 out of 59 LRT3 work packages had been awarded, with the largest work package worth RM1.56 billion bagged by a consortium comprising CRRC Zhuzhou Locomotive Co Ltd, Siemens Ltd China and Tegap Dinamik Sdn Bhd.
The consortium was tasked with the design, manufacture, supply, delivery, installation, testing and commissioning of 42 six-car light rail vehicles for the project. The project has reportedly seen 10% progress thus far.
LRT3, which is expected to serve a population of two million people with the capacity to transport 36,700 passengers per hour each way, is deemed as crucial in alleviating traffic congestion along one of the most important and densely populated economic development corridors in the Klang Valley, from Klang to Petaling Jaya. LRT3 will run from Bandar Utama to Johan Setia, Klang, with 26 stations overall.
Also read: Prasarana pledges to reduce LRT3 cost