Tony Pua & Lim Guan Eng Say LRT3 Was Never Halted Under Pakatan Harapan, Cost Cuts Saved RM9.72 Billion

Former Finance Minister Lim Guan Eng and former Damansara MP Tony Pua have defended Pakatan Harapan’s (PH) handling of the LRT3 project, insisting the Shah Alam LRT Line was never halted during the coalition’s administration and that its cost rationalisation saved taxpayers RM9.72 billion.

In a joint statement responding to remarks by the Sultan of Selangor, Sultan Sharafuddin Idris Shah, the pair said PH fully supported the project after taking office in 2018, describing it as a critical public transport initiative for Klang Valley residents.

Cost review triggered after budget escalation

According to them, the previous Barisan Nasional administration approved RM9 billion for the project in 2015 and provided Prasarana with a RM10 billion government guarantee. However, by March 2018, Work Package Contracts worth RM15.2 billion had already been awarded.

“After accounting for land acquisition, consultancy fees, Project Delivery Partner (PDP) fees, and financing costs, Prasarana sought to increase the project’s total budget to RM31.65 billion, along with an additional RM22 billion in government guarantees.”

When PH took over in May 2018, construction continued without interruption while the government worked with appointed PDP MRCB-George Kent to reduce overall costs.

With the project only about 9% complete at the time, the government appointed independent engineering consultants to review the project.

“The review aimed to ensure accountability and to align the project’s scale with projected passenger demand, as approved by the Land Public Transport Commission (APAD).”

Following the review, the Cabinet approved a 47% reduction in the project’s estimated cost, bringing it down from RM31.65 billion to RM16.63 billion.

Train sets were reduced based on passenger demand forecasts

Among the cost-saving measures were reducing the train order from 42 six-car train sets to 22 three-car train sets based on passenger demand forecasts, as well as deferring the construction of five stations with initially low projected ridership. Technical provisions were retained to allow the stations to be built in the future.

The project completion deadline was also extended from 2020 to 2024, which they said avoided costly acceleration payments to contractors.

Those five stations have since been reinstated under a RM5.3 billion second-phase contract that also includes additional trains and upgrades, bringing the final project cost to RM21.93 billion.

“This remains RM9.72 billion lower than the RM31.65 billion budget previously approved,” Tony pointed out.

According to the duo, the lower project cost is also expected to save the government up to RM10 billion in interest payments over the next 25 to 30 years.

They stressed that the savings did not come at the expense of passenger capacity or the rail line’s functionality. Instead, they said the funds saved could be redirected towards welfare programmes and development projects.

They concluded by thanking Sultan Sharafuddin for highlighting the importance of the LRT3 project, saying the completed line will help reduce congestion, shorten travel times and support Selangor’s economic growth.

Also read: MBSA Says Upgrades Underway Following Complaints Over Lack of Walkways at LRT3 Shah Alam Stations