RM40 bil figure for KVMRT project 'no longer relevant', says MRT Corp

KUALA LUMPUR (Dec 24): Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said today the original cost estimate of RM40 billion for the construction of the Klang Valley MRT (KVMRT) project is "no longer relevant" to be used for comparison with the current project that has materialised.

"We wish to make clear that this figure was derived from a conceptualised proposal back in 2010," it said in a statement today.

"The amount did not include electric trains and related systems, as well as land acquisition," it added.

MRT Corp, which is wholly-owned by the Minister of Finance (Incorporated) and the developer and owner of the MRT project, said the RM40 billion figure was originally submitted in a private sector proposal for a three-line KVMRT project to be built concurrently, to the government back in 2010 and it was based on prices in 2009.

"However, after it was submitted to the Land Public Transport Commission (SPAD), the government reviewed and carried out a study on the proposal. The conclusion of the study in 2010 resulted in the model for the KVMRT project being changed significantly," it explained.

MRT Corp was responding to a recent statement by PKR vice-president Rafizi Ramli that the cost of the entire 141km MRT project could reach RM100 billion.

The company went on to explain that at the end of 2010, the government had approved the construction of the MRT Sungai Buloh-Kajang (SBK) Line -- the first of the KVMRT project.

"Upon the finalisation of the SBK alignment and the procurement process, MRT Corp was able to announce in December 2012 that the budget for the construction cost of the SBK Line would be RM23 billion," it said.

Similarly, MRT Corp arrived at the estimated construction cost for the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line at RM32 billion on the basis of the tenders it had awarded for the construction of the line.

"All tenders for both SBK and SSP Lines were awarded through open tender system," added MRT Corp.

On the proposed MRT Line 3, also known as the Circle Line, MRT Corp reiterated that the feasibility study for the line is currently being carried out.

"The results are expected to be known in the first quarter of 2017. In view of this, it would not have been possible for MRT Corp to give a cost estimate for the MRT Line 3. Any figure which had been reported as the cost of the MRT Line 3 would be purely speculative and had come from other sources, and not MRT Corp.

"As such, any assertion that MRT Corp had announced a figure for the cost of MRT Line 3 is absolutely erroneous," it said.

While expressing its disappointment that the MRT project is being politicised, MRT Corp said it will focus on ensuring that the construction of the SSP Line is delivered on time and within the budgeted cost.

It revealed that in the one week since the first phase of the SBK Line commenced operations, some 210,000 passengers have used the service. -- theedgemarkets.com