Najib aware of LRT3's exact cost — Guan Eng

KUALA LUMPUR (July 20): Former Prime Minister Datuk Seri Najib Razak (pictured) is well aware that the actual cost to build the 37km Light Rail Transit Line 3 (LRT3) is RM32 billion as he had been present at relevant meetings to discuss the project, Finance Minister Lim Guan Eng reiterated today.

At a special luncheon event organised by ACCCIM today, Lim said he was told that Najib had attended meetings relating to the construction of LRT3, and that the latter was aware of the actual cost of building the rail link to connect Klang and Bandar Utama.

"For LRT3, we have to go ahead because it is important to alleviate the traffic condition, but it has to be done at a lower cost. The previous government initially gave an estimate of about RM10 billion just to make everybody happy, but when we came into power, we were told that the project actually needs RM32 billion.

"And when we asked them (officials involved in the project), they said the former prime minister is aware about it, he attended those meetings," Lim said in a speech to ACCCIM members.

Earlier this week, DAP lawmaker Tony Pua issued a statement asserting Najib could not claim not to have known that a RM9 billion budget approved for the LRT3 during his administration was merely for construction costs.

Pua pointed out the RM9 billion initial budget did not include other costs such as land acquisition, project delivery partner fees, other consultant fees, operational and overhead costs, as well as interest payments during construction.

On Tuesday, Najib told Malaysiakini that he had not received any correspondence from Prasarana Malaysia Bhd in March regarding the additional RM22 billion needed to complete the project.

In a July 11 statement, Lim said that in 2015 Prasarana had secured a government guarantee for a RM10 billion bond facility to fund the project.

However, on March 30 this year, the state-owned transport company requested an additional RM22 billion in government guarantees to ensure funding for the construction and completion of the project.

The government has since agreed to proceed with LRT3 after the total cost was slashed to RM16.63 billion by scaling down some aspects of the project. — theedgemarkets.com

For more stories, download EdgeProp.my pullout here for free.