The LRT3 project is currently in the midst of a massive cost-cutting programme, and over the weekend the project’s operator Prasarana has released a statement saying that it was fully aware that the initial RM10 billion budget allocated was insufficient.
The company stated that the government guaranteed bonds approved on March 30, 2015 only covered the cost of work package contracts and supply of feeder buses (RM9 billion), as well as land acquisition (RM1 billion). It added that it knew that a substantial increase in budget would be needed for LRT3 to be completed.
Said to be excluded from the bonds were the now-defunct goods and services tax (GST), the project development partner (PDP) fee and reimbursable costs, contingencies, owner’s costs (including contributions to utility companies and staff costs, among others), owner’s consultancy services like an independent checking engineer reporting to the Land Public Transport Commission (SPAD), preliminary and general costs, land rental, cost claims and interest incurred during construction.
Prasarana also claimed that it formally requested approval on March 30 this year to issue an additional RM22 billion in government guaranteed bonds, with the expectation that the total final cost of the project would increase to RM31.65 billion.
It now awaits instructions from the ministry of finance on the comprehensive cost rationalisation measures to be approved. Last Thursday, finance minister Lim Guan Eng announced that the cabinet had approved the reduced project cost of RM16.6 billion – a 47% or RM15 billion reduction.
This was achieved through measures such as reducing the number of stations and train sets (which themselves have been made smaller), as well as postponing the completion date from 2020 to 2024. Prasarana said that it would abide by the instructions of the ministry, and that the ministry’s decision to rationalise the cost of the project is also fully supported by SPAD.
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ha ha ha ha ha cannot stop laughing. So many fake posts in the last PT posting on LRT3. 152 comments. And most comments stated that Pakatan raised the cost to RM32 bil from RM9 billion
Ha ha ha ha ha
Time for the fake news Opposition to grow up and learn to be honest for once
Many people confused. They did not know that on March 30th, the figure balooned to RM32 Billion from RM9 billion according to Prasarana.
Prasarna made this annoucement on March 30 2018. This was long before PH Government took over on May 9th
this is the blog where i can find so much friends :)
just read it carefully..
“Prasarana also claimed that it formally requested approval on March 30 this year to issue an additional RM22 billion in government guaranteed bonds, with the expectation that the total final cost of the project would increase to RM31.65 billion.”
the expectation that the total final cost of the project would increase to rm31.65 billion. however the previous gov never approves it until come the new minster.
come on laa…. you still think you can fool the rakyat???
There was no announcement. Prasarana made a request via media, but was rebuffed by Najib then. Now they try their luck again with new Government and- ka-ching! -it works this time. Somebody’s gonna get filthy rich to the tune of rm7Billion for free. And here I thought Malaysia was so poor that we needed a donation drive, but it’s just more Cirque du Soleil.
TRUTH is out. Oppo bashers sooo quiet wei. Lulz
If PM Najib can built MRT 1 for RM21 Billion and this current government builds a smaller system for a higher price, does it imply the missmanagement and incapability of this administrators? This sounds like a bus driver trying to run the economy but instead ruined it. Come let me tell you how this works out.
indeed PM Najib good management. Smooth passage on MRT1 direct ke Sg Buloh. No traffic to worry whatsoever
So many fanboys are confused. They said Pakatan has raised the cost of LRT3 to 32 billion
Let me remind all this fellows, it is Prasarana who said their cost had jumped from RM9 billion to RM32 billion on March 30
This was long before Pakatan Government took over. Infact, Pakatan need a pat on the back for reducing the cost now from RM32b to RM16b
Pat on the back for songlaping RM7b? Perhaps from Bapak Songlap whos back to songlap more.
What? Getting a pat on the back after making rm7Billion clean profit for cronies? Indeed, crime does pay well.
Poor Chavez, still cannot accept the corrupted Government has gone.
Just like the fake news on how 6% GST is layered and how each layers of taxes accumulated into 6% x 4 layers = 24% for the final product?
Then may I ask, why car price never went up 24% when GST implemented? or why car price only drops 6% when GST removed? This shows BN was right, we only pay once, not multiple times like the Fitnah DAP told everyone. I used to believe in this until I read up more and found out the multi-layered GST tax thing is a misconception and a lie DAP kept telling her supporters.
many rakyat fooled for that… including tun m LOL
Rightly said. Deswai GST cud collect more than RM40 Billion tapi SST not even half.
Prasarana requested, but it was not approved, so the official budget for the previous LRT3 project remains at RM15 billion, not RM32 billion.
If you had a bank loan of RM50k for renovation but it’s not enough, and you applied for another bank loan of RM200k to renovate your house but the loan wasn’t approved so you proceed with your renovation with the RM50k in hand anyway, does that mean your total renovation cost is RM250k?
Prasarana requested on March 30 2018, to be approved on May 09 2018.
There’s no Cabinet sitting on May 9, so how to approve. You think rakyat still so bodohkah?
you’re my best friend! :)
From the article the addition fund is still not approve by the previous govt.
32b x 6% = RM1.9B management fee earn by MRCB and George Kent. the PDP for the LRT3.
Don’t worry, now we got a clean Government and corruption has or is being cleaned, we will have lots of money to build LRT4 LRT5 LRT6 LRT7 and so on.
Current Government is saving hundreds of billions from cleaning up corruption
MRT1 52km, RM21 billion.
LRT3 31km RM32 billion
How MRT which is longer can only be RM21 billion?
LRT which is nearly half short can be RM32 billion?
How is this so? Both figures came during the BN Government time.
So, these figures got nothing to do with Pakatan Government.
Dei rajoo bruh.. their frustrations marked by their lack of intellectual acuity. Lolols.
If follow your new boss calculations (did he use Excel for it?), it’s not too far off from MRT 1 cost. So why not just build the LRT 3 as MRT instead? Does anyone left in MOF knows how to do a cost comparison?
Gotta ask the best MOF on March 30, 2015. Just build the LRT 3 as MRT instead.
MOF on March 30, 2015 reported RM9 Billion. So? Why is the new MOF now reporting RM31 Billion? Did RM value suddenly drop to my native Bolivar levels now?
Prasarana formally requested on MARCH 30, 2018 this year to issue an ‘additional’ RM22 billion in government guaranteed Sukuk bonds.
Request ≠ given
The anak can make demands, but should the parents give in all the time?
The previous MOF was able to keep cost low while current MOF got some hanky panky?
The previous MOF got handbags for his wife. Is that considered hanky panky?
Nope. Since when it’s a crime to buy handbags for wife? In that case, 99% of husbands will be in jail, no?
Call SPRM in first. Then we will talk.
Betui! Joli2 taiwan russia.. janji hepi
Ur referring to that PPBM dude?
Mrt 1 52km, rm21 billion.
Lrt 3 31km rm31 billion.
Ini smue sarahan MOF 2013-2018.
Mamat ni krisis identiti ke? Cakap mcm tionghua, tapi nama mcm sy… Sah mng pentaksub tionghua cilok nama sy…. Balikla ko!
Ini sarahan Fin Minister dunno how to count. Oh the irony of it! Lolz!
Lolwhut? Let’s see what the MOF 2013-2018 has to say here; ‘The Light Rail Transit 3 (LRT3) project was officially launched by Prime Minister Datuk Seri Najib Tun Razak at the Malawati Stadium in Shah Alam yesterday evening. Construction of the RM9 billion project’ (https://paultan.org/2016/08/25/rm9-bil-lrt3-project-launched-37-km-from-bandar-utama-to-klang-26-stations-completion-in-2020/)
So nope. MOF 2013-2018 stuck to the quoted figure of rm9Billion. Only PHuckatan time they raised up the figures.
So better just build MRT instead as its Mass vs Light.
I think I need what Prasarana have been smoking initially to quote the price > sounds too good to be true.
your 1st paragraph typo 10 million
Apologies. Fixed.
So it is clear no hanky panky in lrt 3, just the cost is high due to the scale is bigger..the train is bigger capacity, there are more stations and bigger size too. Now that the overall project is scaled down and cost cut. Can we move on from PT policking
PRASARANA was Incorporated to provide public-transport services to M’sian.
What Prasarana can do now is to open its book for all to see instead of trying to justify that the initial RM10 billion budget allocated was insufficient.
It will bode well for Prasarana to conduct another Open tender now to tell all & sundry that they have only the RAKYAT at heart.
We want an honest 100% government-owned company to be transparent that’s all. Is that too much to ask ?!
I believe M’sian want an honest & efficient Gomen/GLC to make the transport system works well for M’sian sake.
Nothing is open in New MY except the chequebook for the Kawans.
you should know!
Yup. From T7 scandal, now we ALL KNOW!
Cut that fat salary and bonuses and everything will be sufficient.
all this while they said Guan Eng lied about 32billion cost!!…now the truth prevailed!
Konpom they will puke… eating back all their words.
That addition fund is just request not approved yet. Officially still RM9-10B
Truth prevailed. LGE was bollocking from front til back and he got his employees to back up his fail-rytales.
Cakap SPAD sudah tak ada. How they support?
Masih ada sehingga akta di gubal, sila rajin menggunakan google & jangan jadi malas.
Exactly. It was widely reported that SPAD will be absorbed by JPJ when PH took over. Why mention SPAD again? Another U-turn by PH Govt? Just like SST?
Silap mata PH skali lagi lettew…