Risks won't stop projects from being privatised, says Ling
Susan LoonePublished: Jan 15, 2001 7:17 AM | Updated: Jan 29, 2008 6:21 PM
Transport Minister Dr Ling Liong Sik said that although undertaking infrastructure projects carries certain risks, it will not stop the government from privatising such development projects to provide more facilities for the people.
Transport Minister Dr Ling Liong Sik said that although undertaking infrastructure projects carries certain risks, it will not stop the government from privatising such development projects to provide more facilities for the people.
"Infrastructure is always a risk, but if the government does not have the money to do it, and does not allow the private sector to do it either, then the nation will suffer," he told reporters after witnessing the official signing for the concession agreement between the government and the KL Monorail System Sdn Bhd this morning in Kuala Lumpur.
Ling was responding to a question on what guarantee is there that the monorail system will not suffer the same fate as Putra and Star LRT systems, which are being bailed out by the government for RM6 billion.
He said that if everything such as loans, infrastructure and good services were in place, any project should be able to proceed with no problems.
"To ensure viability of the project, the government has granted KL Monorail System a concession period of 40 years," he added.
Ling cited the examples of West Port and the North-South Highway as some of the development projects which had benefited the nation.
He said that West Port in Klang could not have achieved its top 10 status in the world if it had not been privatised.
He added that the North-South Highway, linking Johor in the south to Perlis in the north, had contributed to the economic growth in all the small towns along the way.
Asked if it would have been better to improve existing transport systems, Ling said that the monorail system was part of that improvement as the transport system comprises a whole network.
Golden Triangle
Chairman cum managing director of KL Monorail System David Chew said if it weren't for the 1997 financial crisis which forced a two-year delay, the monorail would have been completed by mid last year.
"Let's start this project by looking at it positively. If we look at it negatively, then nothing good will come out of it," he said, adding that the company had received a loan of RM300 million from the government.
Under the concession agreement, the KL Monorail System will design, build, operate and maintain 8.6km of the monorail system at a cost of RM100 million per kilometre.
The cost is reported to be much lower than the construction cost of the other LRT systems which was about RM150 million per kilometre.
"This was made possible from utilising Malaysian manufacturing technology. The company has a new plant in Rawang," revealed Ling.
The company is also given the right to carry out ancillary activities which include advertising along the monorail corridor and a commercial development project called "Jalan-Jalan", a 250,000 sq ft commercial building in Brickfields to include about 50 restaurants.
The monorail system passes through KL's golden triangle or central business and shopping district and will provide access to major hotels and shopping centres in the city centre.
It also interfaces with Star LRT, Putra LRT, KTM and the ERL (Express Rail Link) and is expected to completed by this December with services commencing next year on July 1.
Fares will be at RM2.50 maximum and RM1.20 minimum per destination. When successfully completed, the monorail can take up to 20,000 passengers per hour per destination, Chew revealed.
No politics
Meanwhile, Ling, who is also MCA president, declined to comment on politics today, saying that political statements, especially about Suqiu (Malaysian Chinese Organisations' Election Appeals), would take the spotlight away from the monorail system.
"Next morning, nothing about the monorail will be reported. Instead, there will be news about Suqiu," he told reporters before ending the press conference.
Seven sub-points, out of Suqiu's 83 sub-points in its 17-point appeal, which are considered "sensitive" for allegedly questioning Malay special rights have been "set aside" recently following several secret meetings between Suqiu committee and Umno Youth. ([#1]Suqiu backs down, 'sensitive' points dropped from discussion[/#], Jan 5)
Ling also declined to comment on whether MCA would accept Barisan Alternatif's invitation to the "State of the Nation" talks recently proposed to involve all political parties, from both BN and BA. ([#2]PM urged to put aside Malay unity talks[/#], Jan 9)
"Infrastructure is always a risk, but if the government does not have the money to do it, and does not allow the private sector to do it either, then the nation will suffer," he told reporters after witnessing the official signing for the concession agreement between the government and the KL Monorail System Sdn Bhd this morning in Kuala Lumpur.
Ling was responding to a question on what guarantee is there that the monorail system will not suffer the same fate as Putra and Star LRT systems, which are being bailed out by the government for RM6 billion.
He said that if everything such as loans, infrastructure and good services were in place, any project should be able to proceed with no problems.
"To ensure viability of the project, the government has granted KL Monorail System a concession period of 40 years," he added.
Ling cited the examples of West Port and the North-South Highway as some of the development projects which had benefited the nation.
He said that West Port in Klang could not have achieved its top 10 status in the world if it had not been privatised.
He added that the North-South Highway, linking Johor in the south to Perlis in the north, had contributed to the economic growth in all the small towns along the way.
Asked if it would have been better to improve existing transport systems, Ling said that the monorail system was part of that improvement as the transport system comprises a whole network.
Golden Triangle
Chairman cum managing director of KL Monorail System David Chew said if it weren't for the 1997 financial crisis which forced a two-year delay, the monorail would have been completed by mid last year.
"Let's start this project by looking at it positively. If we look at it negatively, then nothing good will come out of it," he said, adding that the company had received a loan of RM300 million from the government.
Under the concession agreement, the KL Monorail System will design, build, operate and maintain 8.6km of the monorail system at a cost of RM100 million per kilometre.
The cost is reported to be much lower than the construction cost of the other LRT systems which was about RM150 million per kilometre.
"This was made possible from utilising Malaysian manufacturing technology. The company has a new plant in Rawang," revealed Ling.
The company is also given the right to carry out ancillary activities which include advertising along the monorail corridor and a commercial development project called "Jalan-Jalan", a 250,000 sq ft commercial building in Brickfields to include about 50 restaurants.
The monorail system passes through KL's golden triangle or central business and shopping district and will provide access to major hotels and shopping centres in the city centre.
It also interfaces with Star LRT, Putra LRT, KTM and the ERL (Express Rail Link) and is expected to completed by this December with services commencing next year on July 1.
Fares will be at RM2.50 maximum and RM1.20 minimum per destination. When successfully completed, the monorail can take up to 20,000 passengers per hour per destination, Chew revealed.
No politics
Meanwhile, Ling, who is also MCA president, declined to comment on politics today, saying that political statements, especially about Suqiu (Malaysian Chinese Organisations' Election Appeals), would take the spotlight away from the monorail system.
"Next morning, nothing about the monorail will be reported. Instead, there will be news about Suqiu," he told reporters before ending the press conference.
Seven sub-points, out of Suqiu's 83 sub-points in its 17-point appeal, which are considered "sensitive" for allegedly questioning Malay special rights have been "set aside" recently following several secret meetings between Suqiu committee and Umno Youth. ([#1]Suqiu backs down, 'sensitive' points dropped from discussion[/#], Jan 5)
Ling also declined to comment on whether MCA would accept Barisan Alternatif's invitation to the "State of the Nation" talks recently proposed to involve all political parties, from both BN and BA. ([#2]PM urged to put aside Malay unity talks[/#], Jan 9)
View Comments0