22 February, KUALA LUMPUR – The Light Rail Transit 3 (LRT3) project, scheduled for completion by Feb 28, 2024, will receive government support in terms of the project funding, said Finance Minister Lim Guan Eng.
He said most of the funding for the project, which now costs RM16.63 billion compared with RM31.65 billion previously, would come from the Ministry of Finance, as the employer of the project, Prasarana Malaysia Bhd, was a state-owned company.
We will fund the project through loans and government guarantees, whereby the contractors will have the government’s assurance in terms of payment when they participate in the project, Lim told reporters after witnessing the signing of the novation agreement between Prasarana, MRCB George Kent Sdn Bhd (MRCBGK) and nine works package contractors (WPCs).
However, he declined to comment further on the financial architecture as it could affect the final price of the project.
Prasarana president and group chief executive officer Datuk Mohamed Hazlan Mohamed Hussain said the company would approach the government whenever funds are required and the government would advise on the suitable financial instrument.
Meanwhile, under the novation contract signed today, nine WPCs have migrated to the Fixed Price Contract model from Project Delivery Partner scheme, whereby the risks pertaining to the project would be borne by the companies.
Following the contract signed today, we can expect the project to accelerate. Currently, the project is still ongoing but is conducted at a slow pace, Mohamed Hazlan said.
The LRT3 project, connecting Petaling Jaya and Klang, will see the construction of 20 stations, with another five stations to be built in the future.
Meanwhile, when asked to comment on hints from Home Minister Tan Sri Muhyiddin Yassin regarding an announcement pertaining to highway tolls, Lim said he would not comment on the matter until the time was right.
It is part of the manifesto and we want to fulfil our promises, but wait for the announcement, he said.