East Coast Rail Link to proceed at a cost of RM74.96 billion – RM11.01 less compared to original quote

East Coast Rail Link to proceed at a cost of RM74.96 billion – RM11.01 less compared to original quote

The cost of the East Coast Rail Link (ECRL) has been reduced to RM74.96 billion, according to prime minister Datuk Seri Anwar Ibrahim. The new figure is RM11.01 billion less when compared to the original cost of RM85.97 billion approved in 2016, as reported by The Edge.

In a press conference broadcast on Wednesday (December 21), Anwar revealed the cost reduction came about despite a “slight increase” in cost incurred by a new realignment. “Although there was a slight increase [in cost] to accommodate the realignment of the ECRL project that we approved, [we managed to] bring down the total cost by RM11.01 billion,” he said.

The ECRL project was first launched in 2017 and its progress has been rather turbulent, with various figures presented throughout the years. To make it easier to digest, the transport ministry (now headed by Anthony Loke) recently issued a release detailing the cost breakdown of the project throughout the years.

The original cost of the ECRL project (ECRL 1.0) when it was first introduced was RM85.97 billion, with RM66.78 billion being the construction cost, while the remaining RM19.19 billion was for other development costs (land and utility costs, project cancellation/delay costs, interest during construction and operation expenses).

In 2018, then prime minister Tun Dr Mahathir Mohamad cancelled the ECRL project due to cost concerns, but it was later resurrected in 2019. The amended ECRL 2.0’s quoted overall cost was RM66.02 billion, with the construction cost reduced from ECRL 1.0 to RM44 billion, but other development costs went up to RM22.02 billion.

The latest figure under the unity government is RM74.96 billion as mentioned, with the construction cost increased to RM50.27 billion and other development costs to RM24.69 billion. The ministry also emphasised that the cost reduction compared to ECRL 1.0 was achieved through a series of ECRL contract negotiations finalised in 2019 and 2022 contract.

East Coast Rail Link to proceed at a cost of RM74.96 billion – RM11.01 less compared to original quote

“Several factors including the comprehensive implementation of value engineering and the realignment of the ECRL tracks on Section C (Temerloh-Serendah-Port Klang) has contributed to the reduction in overall construction cost,” it said.

When completed, the 665-km rail project from Kota Bharu to Port Klang will feature 59 tunnels and 20 stations to ferry passengers as well as cargo. It will also see the construction of the Serendah Bypass to facilitate the movement of cargo from the north as well as a railway extension from the Jalan Kastam station to both Westport and Northport terminals.

The ECRL is expected to start operating in January 2027 and is currently 30% completed as of May this year, with Wee previously saying the target is to reach 37% completion by the end of 2022.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • PN Best on Dec 23, 2022 at 3:47 pm

    Well done Anwar. We should save as much as we can.

    Like or Dislike: Thumb up 20 Thumb down 12
    • Rakyat Malaysia on Dec 23, 2022 at 6:36 pm

      Tenkiu bestest Transport Minister Dr Wee and PM Sabrikor for saving as much rakyat money. Too bad backdoor PM Non will be reaping the benefits of your hardwork. Hu hu hu…

      Like or Dislike: Thumb up 8 Thumb down 21
      • Ex-PN Supporter on Dec 23, 2022 at 8:42 pm

        Taknak PN Pembaziran nasional

        Like or Dislike: Thumb up 20 Thumb down 7
      • Civic Turbo 2018 on Dec 23, 2022 at 10:46 pm

        ECRL2.0 not cutting thru Banjaran
        cover Putrajaya, N9 before Klang
        Of course cheapest

        ECRL3.0 =updated ECRL1.0
        old Route but shorter tunnel
        So slightly cheaper

        Like or Dislike: Thumb up 13 Thumb down 0
  • From 66.02 Billion to 74.96 Billion, is increase cost. Don’t cheat by looking at ancient 2016 data. Look at latest 2019 cost.

    Like or Dislike: Thumb up 14 Thumb down 7
    • Tin Kosong Sembrong on Dec 23, 2022 at 7:07 pm

      Sir,who pushed this 85Billion Rm unwanted megaproject before GE14 n 15? The merpati.
      Any successor garmen like it or not.have to swallow this piece of shit.
      Make no mistake,this white elephant will be transporting livestock,grains etc,more than passengers when fully functional. 85 Billion Rm is almost double the 1MDB shit.

      Like or Dislike: Thumb up 9 Thumb down 4
      • driver5 on Dec 25, 2022 at 6:36 pm

        Unwanted project? Many folks are looking forward for this.

        Like or Dislike: Thumb up 3 Thumb down 1
      • Benlu on Dec 26, 2022 at 12:41 pm

        Unless Malaysia duplicates China’s similar success. Transport and other appropriate infrastructural developments are preconditions for other economic activities, growth and developments.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Weak ringgit on Dec 23, 2022 at 5:54 pm

    Ver 1 = 85B

    Ver 2 = 66B

    Ver 3 = 74.999B

    Reasons for variance : USA increase interest on overdrive mode no-stop

    Like or Dislike: Thumb up 4 Thumb down 7
  • drMpower on Dec 23, 2022 at 7:51 pm

    Mahathir’s cost is even lower that Anwar’s

    Like or Dislike: Thumb up 9 Thumb down 4
    • Benlu on Dec 26, 2022 at 12:43 pm

      You could cut costs by just reducing the size of the projects. That does not necessarily make it better.

      Like or Dislike: Thumb up 3 Thumb down 1
  • kelpa32 on Dec 24, 2022 at 10:53 am

    much more needed is LPT linking KT to KB, which still MIA

    Like or Dislike: Thumb up 1 Thumb down 2
  • Percutian Nasional on Dec 24, 2022 at 2:08 pm

    Hopefully no cutting corners involved. Like washrooms with no jamban

    Like or Dislike: Thumb up 3 Thumb down 1
  • ECRL cost
    2016 – Najib – RM86B
    2019 – Mahathir – RM66B
    2022 – Anwar – RM75B

    Save cost or increase cost?

    Like or Dislike: Thumb up 6 Thumb down 3
  • how about PAN Borneo ?

    Like or Dislike: Thumb up 1 Thumb down 0
 

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