MRT may cost more than RM36.6bil
Aidila RazakPublished: Jan 11, 2011 1:27 PM | Updated: Jan 11, 2011 4:05 PM
The mass rapid transport (MRT) system, on which construction is due to start in July, may cost more than the estimated RM36.6 billion for the three lines.
The original figure was a 2009 estimate, but Spad says property development may offset costs.
The mass rapid transport (MRT) system, on which construction is due to start in July, may cost more than the estimated RM36.6 billion for the three lines.
"You must remember that RM36.6 billion was the estimate in 2009. It can potentially be higher, depending on inflation and success in value management," said Land Public Transport Commission (Spad) chief executive officer Mohd Nur Ismal Kamal.
The RM36.6 billion estimate does not include acquisition of land and rolling stock.
However, he added, Spad is looking into ways to offset the cost including through development of the land surrounding the MRT stations, as per the Hong Kong model.
"(Project owner and government-linked company) Prasarana will set up a property development company for this purpose," he said.
According to Mohd Nur, tenders will be called for the entire project in April and the award will be made by mid-May.
"(Project development partner Gamuda-MMC) will have a say in the award, but the final decision will be made by the government," he said.
The project is under the jurisdiction of a steering committee chaired by the prime minister and an executive council chaired by the chief secretary.
Gamuda-MMC to bear cost overrun
Any cost overrun will be borne by Gamuda-MMC, while a "bonus" will be provided by the government if the company is able to complete the project on time and below the target cost, which Mohd Nur said cannot be revealed.
"Prasarana will appoint independent engineers to inspect the work and to ensure that everything (is done according) to specifications," he said.
The infrastructure costs will be fully borne by the government, with funds raised through the market by a Ministry of Finance corporation entity which will be set up for the purpose.
The fares are expected to cover operational and management costs.
Muhd Nur added that Spad is also engaging with independent consultants for the project, which will be modelled on the Hong Kong, Singapore, Seoul and London urban rail systems.
Groundwork will begin in July for the Sungai Buloh-Kajang line, based on the urban rail transport section of Spad's land transport master plan which is due in April.
"The full master plan will be ready by September but the rail system will be the core, so bus routes etc will be planned to work around the rail system," he said.
There will also be integrated hubs to incorporate the existing LRT system.
The Sungai Buloh-Kajang line is due for completion in 2016, while an announcement will be made in April about the second and third lines.
"You must remember that RM36.6 billion was the estimate in 2009. It can potentially be higher, depending on inflation and success in value management," said Land Public Transport Commission (Spad) chief executive officer Mohd Nur Ismal Kamal.
The RM36.6 billion estimate does not include acquisition of land and rolling stock.However, he added, Spad is looking into ways to offset the cost including through development of the land surrounding the MRT stations, as per the Hong Kong model.
"(Project owner and government-linked company) Prasarana will set up a property development company for this purpose," he said.
According to Mohd Nur, tenders will be called for the entire project in April and the award will be made by mid-May.
"(Project development partner Gamuda-MMC) will have a say in the award, but the final decision will be made by the government," he said.
The project is under the jurisdiction of a steering committee chaired by the prime minister and an executive council chaired by the chief secretary.
Gamuda-MMC to bear cost overrun
Any cost overrun will be borne by Gamuda-MMC, while a "bonus" will be provided by the government if the company is able to complete the project on time and below the target cost, which Mohd Nur said cannot be revealed.
"Prasarana will appoint independent engineers to inspect the work and to ensure that everything (is done according) to specifications," he said.
The infrastructure costs will be fully borne by the government, with funds raised through the market by a Ministry of Finance corporation entity which will be set up for the purpose.
The fares are expected to cover operational and management costs.Muhd Nur added that Spad is also engaging with independent consultants for the project, which will be modelled on the Hong Kong, Singapore, Seoul and London urban rail systems.
Groundwork will begin in July for the Sungai Buloh-Kajang line, based on the urban rail transport section of Spad's land transport master plan which is due in April.
"The full master plan will be ready by September but the rail system will be the core, so bus routes etc will be planned to work around the rail system," he said.
There will also be integrated hubs to incorporate the existing LRT system.
The Sungai Buloh-Kajang line is due for completion in 2016, while an announcement will be made in April about the second and third lines.
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