Loke said the federal government has decided to appoint MRT Corp as the project’s developer and asset owner, with the Penang LRT expected to be operational by 2030.

He said the project will be split into three components, with the first segment involving the line from Silicon Island (an island being reclaimed to the south of Penang near the airport) to Komtar, George Town.

“SRS Consortium Sdn Bhd will be offered this contract through the ‘single sourcing request for proposal’ mechanism.

“This is based on a request from the Penang government, which appointed SRS as its project delivery partner for the Penang Transport Master Plan, which includes the LRT line, through an open tender in August 2015,” he said at a press conference.

SRS is a subsidiary of Gamuda Bhd.

Loke said SRS had conducted preliminary technical studies and designs, in addition to obtaining approval for environmental impact assessment and social impact assessment.

“All these efforts were initially funded by SRS,” he said.

Loke added the total project cost would only be determined upon the conclusion of negotiations with all companies within the next six months.

“The construction work for the Penang LRT project is targeted to begin this year (after the negotiations are completed),” he said.

Meanwhile, the remaining two contracts – comprising a line from Komtar to Penang Sentral (on the mainland) as well the turn-key systems and rolling stocks – will be offered on an open tender basis.

The Penang LRT Mutiara Line, spanning 29km, has been reported to have 20 stations, including two interchange stations at Komtar and Penang Sentral.

It is expected to ease traffic congestion which has been worsening despite several road projects on the island.

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