Negotiation with contractor for Penang LRT project in final stage, work to begin early 2025, says Loke

• “Previously, the route was a direct line or vertical alignment from PIA to Komtar, but now it needs to go to Penang Sentral, as directed by the prime minister (Datuk Seri Anwar Ibrahim). Therefore, the design has to be modified, and there will be changes in terms of costs and scope,” he said.

SEBERANG PERAI (Nov 11): The negotiation with the contractor for the Mutiara Line Light Rail Transit (LRT) project in Penang is now in the final stage and the work is expected to commence early next year, according to Transport Minister Anthony Loke.

He said that the negotiation between Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) and the contractor, SRS Consortium, is still ongoing as there are several matters that need to be finalised before the proposal can be submitted for approval by the Ministry of Finance (MOF).

“It is because the contractor (SRS Consortium) had previously struck a deal with the state government with a different development model (for the project).

“But now that the federal government is taking over, there are certain procedures (that need to be followed). It has already been approved by the Cabinet but the details in terms of costs need to be renegotiated with the contractor.”

Loke said this after witnessing the signing of the memorandum of agreement between the Railway Assets Corporation (RAC) and the Penang Housing Board and the signing of the heads of agreement between RAC and Rivanis Ventures Sdn Bhd for partial development on Lot 286, Lot 65 and Lot 67 in Bandar Perai, here on Monday.

Loke said the ministry also hoped that all the necessary processes would be finalised by the end of this year so that the work on the Mutiara Line LRT project could begin early next year.

Without giving a specific commencement date, the minister said the first phase of the project will begin from the Penang International Airport (PIA) to Komtar, while the second phase will involve a route crossing over to Penang Sentral in Seberang Perai.

“Previously, the route was a direct line or vertical alignment from PIA to Komtar, but now it needs to go to Penang Sentral, as directed by the prime minister (Datuk Seri Anwar Ibrahim). Therefore, the design has to be modified, and there will be changes in terms of costs and scope,” he said.

Last March, the federal government officially took over the Mutiara Line LRT project from the state government following the Cabinet’s approval of the development proposal for the project.

The government decided to appoint MRT Corp, a wholly owned subsidiary of MOF Inc, as the developer and asset owner, with the project to be implemented through an open tender process.

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