Final cost of Penang LRT yet to be determined, says Loke

• "I want to stress that the RM13 billion figure has not been finalised. As of now, RM13 billion has been approved, but we will also take into account ongoing construction costs and the outcome of the tender process later."

KUALA LUMPUR (Feb 19): The final cost of the Penang Light Rail Transit (LRT) project has yet to be determined, as it depends on the ongoing procurement process and tender results for civil works and turnkey systems, said Transport Minister Anthony Loke Siew Fook. (pictured)

The RM13 billion allocation approved by the federal government for the project includes both construction costs and land acquisition, Loke told the Dewan Rakyat on Wednesday.

"I want to stress that the RM13 billion figure has not been finalised. As of now, RM13 billion has been approved, but we will also take into account ongoing construction costs and the outcome of the tender process later," the minister said when wrapping up the debate on the motion of thanks for the royal address.

The LRT project, known as the Mutiara Line, consists of 21 stations, running from the reclaimed Silicon Island to Penang Sentral. It comprises three tender packages.

Last month, Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) — the project developer and asset owner of the Mutiara Line — appointed SRS Consortium Sdn Bhd as the main contractor for the first civil works package, worth over RM8 billion.

SRS Consortium, a joint venture in which Gamuda Bhd (KL:GAMUDA) holds a 60% stake, will construct the initial segment, stretching from Komtar in George Town to Silicon Island. This segment includes 19 stations and other related facilities. The tender request for the second civil works contract will open in July 2025.

Loke said operating costs of the Mutiara Line will be funded through fare collection and non-fare revenue sources, similar to the LRT and MRT systems in the Klang Valley.

He added that the government may conduct an open tender to identify a suitable operator with the necessary financial capacity to run the railway system.

"For now, we are focusing on physical construction. A decision on the operational model and operator will be made in the future," he said.

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