The cost of LRT3 climbs to RM 31.45 billion

KUALA LUMPUR: The Projected Total The Cost of the Line Project Tram 3 (LRT3) climbed to RM 31.45 billion, Finance Minister Lim Guan Eng said yesterday, attributing the mismanagement of Prasarana Malaysia Bhd.

The RM15 billion cited in recent press reports. The initial estimate when the project was launched in 2015 was RM9 billion.

Guan Eng, in a statement, called for a drastic reduction in costs to make the project feasible and profitable.

He added that the Department of Finance will not support any additional funding required for the project unless the cost is "streamlined significantly without compromising the integrity of the rail network as well as the safety and quality of service provided. "

reports indicated that the cost of LRT3 can be reduced by RM 6 billion. The ministry wants to declare that more than 6 billion RM must be reduced for the LRT3 project to continue, "said Guan Eng.

The minister noted that Prasarana had obtained in 2015 a government guarantee of a bond facility of RM 10 billion.

However, on March 30 this year, the state transport company requested an additional government guarantee of RM 22 billion to provide financing for construction and construction. Completion of the project, said Guan Eng.

"The finance minister asked Prasarana to rigorously review the cost of the project to ensure its viability," he added.

Guan Eng said that the LRT3 is essential to reduce traffic congestion along one of the most important economic development corridors Klang Valley

The 37 km alignment connects Klang to Bandar Utama to Petaling Jay Guan Eng said the LRT3 should serve a population of two million people, carrying 36,700 passengers per hour.

A report from Monday indicated that Prasarana could take over the construction of the project by the project delivery partner. 50 Joint venture between Malaysian Resources Corp Bhd and George Kent (Malaysia) Bhd – due to massive cost overruns.