The Malaysian government has no plans to source for new project delivery partners (PDPs) for the LRT3 light rail transit project, finance minister Lim Guan Eng said. “If we have to call for a tender again, we have to pay more than RM4.2 billion in compensation. This would be a cost that would be too heavy for the government to bear,” he was quoted as saying in a report by The Star.
This was in response to Kepala Batas MP Datuk Seri Reezal Merican’s suggestion that the government terminate the services of Prasarana as it had “failed to keep the cost of the LRT3 project to its initial cost of RM9 billion.”
As it stands, the LRT3 project would go ahead, albeit with massive cost-cutting measures. A review of the project saw the initial project cost slashed from RM31.65 billion to RM16.63 billion for a cost reduction of 47% or RM15 billion, the report quoted the finance minister as saying. He also rejected suggestions that a scaled-down version of the LRT3 project would be less effective.
The new LRT line is expected to serve two million passengers, with the capacity to transport 36,700 passengers per hour in each direction, the report said. The line will stretch from Johan Setia in Klang to Bandar Utama in Petaling Jaya, with the completion date for the project pushed from 2020 to 2024 in order to further reduce construction costs.
In addition to the postponement, further cost reductions were achieved through reducing the number of train stations (five deferred, one cancelled) and train sets, from 42 sets of six-car trains to 22 sets of three-car trains. An earlier report said that the reduction in size of the stations and capacity of the trains were because Prasarana’s specifications were well above the necessary requirement of an LRT system.
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Meaning the Kawan alredi agreed to the Priced-Up-But-Call-It-Cost-Down plan.
Tender salah, tak tender pon salah. Apa yg Gomen buat, semua salah. Basher paling senang.
Ye ke? Dulu tak main hentam semua apa yg gomen buat. Baik x baik pun kasi hentam. Sekang xbole ke? Gomen baru xbole dikritik ke? Buka mata dn buka minda, janji2 merka xde satu pun ditepati.
This is a car site. We talk about cars here.
If you wish, you can go to other sites to comment on non car related matters
Tepat skl tu abang oppo…
LRT jalan cepat, salah
LRT datang awal, salah
LRT beranak, salah
LRT jemput sampai pintu rumah, pon salah …
Only one thing salah. Dedak is salah and now, got no more dedak.
GST refund Ok jer…
We do not need sour grape comments. Already kalah teruk teruk, still very bitter.
Aik. Ain’t PH that was going around campaigning then, that they will be re-tendering those projects on an open and fair basis if they win? Like you said they won, so why the U-turn now? Is the new gomen untrustworthy?
This is a car site. It is not a politik site. You want to talk about politik go to that site.
Here we talk about cars.
MRT3 , ECRL, and HSR are being re-negotiated now. LRT3 is already well under construction, too late to retender.
Too many negative comments from people who now cannot get anymore free money.
30 million Malaysians are happy with a clean Government now
30 mil m’sians now happy coz Gahmen going to:-
-enhance n extend protection for local car brand for P3 ( more expensive cars for years to come- yahoo!)
-promise first then only do study of buying off toll concessionaires
-barang all Naik coz set (so long I don’t see on receipt then ok lor)
-roll back on many manifesto items coz ‘its not bible’
– super yacht is here but need 9 months to ascertain real owners @ 3 mil/months maintenance cost
Yes 30 million suckers very happy
Fed gov could ill afford to pay another RM4.2B in compensation, on top of RM7 Billion alredi spent to bailout 1MDB.
But they can afford to pay Rm 7Billion on top of the original price yet reduced the specifications. Those with interests are grinning from ear to ear.
What bailout? 1MDB belongs to the Ministry of Finance. All its assets and cash belongs to the Ministry of Finance. The bank interests on the current assets will be borne by the MoF because once these assets are monetized in future, the profits will also belong to the MoF. The issue here is that 1MDB’s gearing is pretty high while it has a quick ratio that is crap.. it has no ability to repay all contingencies by liquidating quick assets within 60-90 days.
But, for all the assets that it has, they have decent net present value and the development plans to rationalize these assets have decent IRRs, which are definitely profitable over a 30-50 year timespan even if you give a conservative estimate of the discount rate as being equal to our average national inflation rate, without taking into account economic multiplier effects post-development which will bring about more favorable IRRs throughout the lifespan of these assets.
Bailout my foot, do you guys even know anything at all about finance?
im not gonna pretend i do. if you could explain it like kurzgesagt that’ll be great.
Too much of dedak from the previous. We need to clean all the dedak
This is a car site. It is not a politik site. You want to talk about politik go to that site.
Here we talk about cars.
If Temasek were to repay back all of its loans immediately, it too would need to be “bailed out” because majority of its liabilities are in assets as well. Cut through the propaganda, and you will find them no different than other SWFs, only that they were too aggressive way to quickly.
Why bother about this when new national car coming soon? [http://paultan.org/2018/08/06/847390/]