LRT cost capped at RM16bil

The Star

3 days ago

GEORGE TOWN: MRT Corp is aiming to cap the cost of the Mutiara Light Rail Transit (LRT) Line at RM16bil despite mounting construction expenses and rising inflation.
Its chief executive officer Datuk Mohd Zarif Mohd Hashim said the corporation must take into account nine years of inflation and the economic impact of the Covid-19 pandemic, which caused prices to surge across multiple sectors.
Mohd Zarif said the latest cost projections also included land acquisition and the construction of a cross-channel marine viaduct linking Macallum Street on the island to Penang Sentral in Butterworth.
Otherwise, the overall cost could have ballooned to RM18bil or RM19bil, he said.
'When the project was first announced in 2016, the estimated cost was RM10bil.
'Earlier last year, the Cabinet approved a revised budget of RM13bil. However, that figure did not fully account for inflation, additional construction costs or land acquisition.
'The extension of the line to the mainland also contributed to higher costs, especially with the need to construct a bridge crossing (about RM3bil). This component was not included in the 2016 plan.
'Additionally, land acquisition costs have now been factored in, which could add another RM2bil to the budget.
'About 60% of the land required is state government-owned, while the remaining 40% is privately owned, which we need to acquire at market value.
'As for land belonging to the state government, we hope to secure it at a nominal fee in the interest of public infrastructure development. We are doing our utmost to bring costs down significantly.
'To me, it's simple. Whatever we save today can be channelled to future projects.
'Our goal is to ensure that Penang receives all three additional LRT lines as planned. We need that corridor,' said Mohd Zarif during a media luncheon here yesterday.
As Penang's first LRT, the Mutiara line is a key component of the Penang Transport Master Plan, designed to enhance connectivity and alleviate traffic congestion on both the island and the mainland.
Phase 1 of the Mutiara Line project will span 23.7km, with 21 elevated stations, including a provisional station at Silicon Island, which is currently being reclaimed.
SRS Consortium Sdn Bhd, a joint venture with Gamuda Bhd holding a 60% stake, will construct Phase 1 to connect Komtar in George Town with Silicon Island.
Phase 2 of the Mutiara Line will involve a 5.78km cross-strait line (marine viaduct section 3.06km) that starts from Macallum to Penang Sentral.
The completion of Phase 1 will allow convenient travel from George Town to the Penang International Airport and other key areas on the island.
When Phase 2 is completed, commuters will get to enjoy seamless travel to Penang Sentral to catch KTMB's ETS and Komuter train services, along with many express buses serving the entire peninsula.
On the projected ridership for the Mutiara LRT Line, Mohd Zarif said it is now estimated at 5,000 to 6,000 passengers per hour per direction (pphpd).
He said the revised figures were lower than the earlier projection of 7,000, which drew criticism from non-governmental organisations for allegedly being inflated.
He said the original estimate was based on the assumption that three islands (originally called Islands A, B and C) would be reclaimed off the southern coast of Penang island.
'But with only one reclaimed island now (named Silicon Island), the ridership forecast has been adjusted accordingly,' he said, adding that the numbers were expected to grow once the LRT network expands.
It was reported earlier that three additional lines will be developed in phases – one extending to Tanjung Bungah, another to Air Itam and a fourth one connecting Butterworth, Kepala Batas and Simpang Ampat on the mainland.
'Eventually, we anticipate rider­ship on the Mutiara Line to increase to between 11,000 and 13,000 pphpd,' he said, assuring that the system has been designed with scalability in mind.
'There is ample capacity for growth – essentially double the initial volume.
'The infrastructure is built to allow for additional trains to be introduced as demand increases.'
Mohd Zarif said the long-term plan is meant to enhance urban mobility and provide sustainable public transportation options for the growing population of Penang and the surrounding regions.
He said an open tender for the Phase 2 cross-strait portion of the LRT will open in October.
He added that the design stage has been completed and is awaiting approval from the relevant authorities.
'The bridge design has been carefully developed to provide maximum flexibility for the Penang port to grow.
'We have held discussions with the Penang Port Commission to ensure the bridge will not obstruct shipping,' he said, adding that the bridge, which is 62m above sea level, will also not interfere with aviation.
The bridge will also have a fenced-off section that is open for recreational use by pedestrians, thus further enhancing the quality of life for the people.