The MRT Line 3 (MRT3), also known as the MRT Circle Line, which was postponed when Pakatan Harapan came into power, is being reviewed and the government is studying various funding options, Starbiz reports.
The goal is to lower costs, and the report mentions the option of getting property developers and owners to partially fund the project. The experts they spoke to mentioned a “Rail plus Property” model seen in Singapore and Hong Kong, which could see the private sector partially fund the project, since the government can’t fully do so on its own.
The report adds that consultants have been appointed to find a suitable model, and a decision on the MRT3 project will be made in middle of next year.
“The project was suspended primarily because of the cost factor. But we are prepared to review the project,” transport minister Anthony Loke told StarBiz, adding that the finance ministry has shown willingness to discuss the project.
Loke said that from his ministry’s point of view, MRT3 is important as it will complete the rail network in the Klang Valley. However, the country’s fiscal position will have to be taken into consideration.
“The review is on the premise that the cost has to be lowered. How it will be lowered is a subject of discussion. It will be a new mechanism and a new model of development if ever we proceed with the project to make it cost effective and higher in terms of return on investment,” he told The Star‘s business section, adding that “we hope we can reach a decision by mid-2020, that is six months down the road.”
Following the MRT Sungai Buloh-Kajang line and MRT Sungai Buloh–Serdang–Putrajaya line, the MRT Circle Line in its original form was supposed to be a fully automated and driverless rail system extension forming a loop line of the Klang Valley integrated transit system. Targeted for completion by 2025, the 40 km-long MRT3 was meant to provide coverage in areas surrounding Bandar Malaysia, Ampang, KL Ecocity, Bukit Kiara and Sentul. Connecting the dots, it would have been the finishing line for the city’s rail network.
Of the 26 planned stations, 19 are underground and the cost of underground stations are much higher than at those above ground. About 60% of the project involves tunnelling works, the report says.
Experts Starbiz talked to believe that for the MRT3 to proceed, there needs to be a public-private partnership where land owners and property developers work together with the government to develop infrastructure.
“The study done by the consultants will draft the alignment for certain stations and it will be vastly different from the existing model. Often the connections are afterthoughts, but this time around it is during the planning that the locations will be integrated by asking the developers to contribute the construction.
“This is a framework that the new review may be based on and it will identify tangible benefits, and it can be for existing and new property developments. It is not just alignment but land value capture and we can learn from the Singapore and Hong Kong models. They have set the benchmark,” the report’s source said.
In this model, the developers will have to help partially fund the connection to their buildings and trend has shown that existing MRT stations are strong selling points for new and existing property developments. This will boost property values (TOD concept, 100 metres from MRT station, direct link to MRT and so on) and increase footfall for shopping malls. This win-win method could be the way forward.
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Then why the heck was the gov going all around cancelling projects just to resume it later then? At the pretense of ‘saving money’? Ingat delaying project is free arh? Ptui!
They want “their guys” to come and have a look
Anyway,
Of course if u want developers to join in and build things , u have to build the infrastructure first
All suburbs are built in vicinity if existing higways and train stations
But if developers also have to use their own money to fund these infra projects, won’t it drive up their costs and selling price in an already oversupplied market of unsold properties
Yea driving in circles like circus
Our PH government is like a circus now filled with clowns and show performers with a single devious ringleader pulling the strings.
Now I see why we never get circus shows visiting here anymore (like Cirque du Soleil). Bcos we now have circus shows everytime Parliament meets.
Study by consultants? Dulu dah buat now nak lagi hire consultants, waste more public money..
They want their “own” consultants to profit on this project mate. An insider word is, many of the preselected contractors and supply chain that was established from MRT 1&2 are being switch for you-know-whos-back-in-the-good-old-Madey-days. Sad to see so early in PH reign that endemic corruption is flooding back into our system again. There is no more hope for Malaysia anymore.
Corruptors charged in court. Anwar power next
Corruptors in Madey era then and now are getting off scott free. So many of our politicians in Pg with environmental scandals got acquitted one after another. Go figure.
Projects got bait n switched 24 Dec 2019
Malaysians got bait n switched 5 May 2018
Involving private rather than 100% govt money…why previous govt cant think of that???
% of commission involved maybe? Hey, money talks.
MRT3 Circle Line to build. Better Rm1.50/l petrol dgn Abolished tol,1malaysia bly njoii.
Because previous gomen don’t wanna go thru the stupid Madey induced crony linked rescue via overpaying using taxpayer money charades again. Enough that Najib had to ‘save’ Putraline & Starline & Intrakota & Monorel & Bas Mini & Penang Ferry just because some of these projects was setup to be overpriced (to pay for Madey cronies), then overstaffed (to justify Madey cronies hiring their people), and suffering cost overruns in operation (Madey cronies overpriced everything). When doing MRT 1 and 2, you see how many billions were saved from the initial cost, rather than the usual project cost overruns?
This Loke is a joke! They used to hentam Mahathirsm privitisation but now they are supporting it?? WTF!!! What kind of lalangs are growing in Cabinet of Malaysia Government??
Coz it wont happen.. no company dare to do lah. No untung for private to fund public transport. This new gomen is retard and anyone who still support like u is retarded as well.
Previous govt past 60 years, can only think.
How much Billion kickbacks I get from cronies.
Previous cronies are now the current cronies. Only their appetite got worse, since they know they can now do anything with impunity. The rakyat did voted for them.
Do you know that STARLine and PUTRALine LRTs were once privately held? Do you know what happened to them eventually? Do you know how much eventually govt have to rescue them more compared to actual project cost?
Yeah, those who don’t know history are the kinds of people Mahathir loves. Ever heard of those who don’t learn from the past will repeat the same mistakes. So are we going to repeat the same mistakes too? Why current got can’t think of that???
You sound like of of our own.
Using AI, you need only one track for the mrt instead of two underutilised ones currently. The trains can bypass one snother during station stops. At least 30% cost savings in construction.
Thank You Jibby!
Pls build MRT until puncak alam. The traffic congestion is extreamly bad
Monorail all over again
PH Government’s hopeless government n just want to give the public transportation project to their chronies.
Reduce mrt line2 n ecrl project cost by reduce no of station, little platform size n less facilities of the station, and also bought generic trainset for Mrt line2 n ECRL trainsets.
How do think this PH Government smart to deliver public facilities with these measures?