KUALA LUMPUR: Finance Minister Lim Guan Eng says the LRT 3 project will be constructed at a cost of RM15.02 billion, 47% less than the original cost of RM31.65 billion.
He said the cost savings were achieved when the government realised the original capacity of the project exceeded current capacity needs as well as demand for the next 20 years.
“I wish to stress that the reduction in cost for the LRT 3 will not compromise the quality of its service or capacity. It will serve the daily needs of almost two million people,” he said after witnessing the signing of the LRT 3 Novation Agreement between Prasarana, MRCB-GK and Work Package Contractors here today.
The LRT 3 line, which will connect Bandar Utama in Petaling Jaya and Johan Setia in Klang, is expected to be operational by 2024.
It will run on a 37.6km track which will reduce travelling time from Klang to Petaling Jaya from two hours in congested traffic to one.
Studies estimate that the LRT 3 will be used by 67,000 passengers on a daily basis. The demand is expected to rise to 126,000 passengers in 2030 and 219,000 in 2040.
In order to better manage costs, the government has changed the nature of the contract with MRCB-GK from project delivery partner to fixed-price contract.
Under the new arrangement, Prasarana will only need to pay RM760 million, not RM808 million as earlier reported since RM48.6 million worth of works have been rationalised.