KUALA LUMPUR, July 26 — Involvement in a metro project in Saudi Arabia could end up costing Prasarana Malaysia Berhad, a PKR federal lawmaker asserted today.
Pandan MP Rafizi Ramli claimed, based on information he has and his own estimates, the project may not be profitable and may instead result in up to RM142 million in losses upon the contract’s completion next May.
He further asserted that his fear was supported by a Finance Ministry reply that said Prasarana’s expenditure for the Al Mashaer Al Mugaddasah Metro Southern Line (MMMSL) and Makkah Shadow Operator so far has exceeded its revenue from the project.
“The amount of revenue as of June 30 2017 is RM580 million while the amount of funds already spent is RM679 million,” he said, quoting from the ministry’s written reply to him.
Prasarana’s contract for the project runs from December 2014 to May 2018, with a total valuation of RM930 million.
The Finance Ministry's reply however noted the fact that there is still RM115 million in "approved payment" that has not been paid out to Prasarana to date.
But Rafizi said that approved payments are normally already included in the revenue account regardless of whether they are paid out.
He said that with Prasarana not turning profit in its existing operation of the Light Rail Transit (LRT) system in Malaysia and the Saudi metro deal, the company would be further burdened if it is asked to maintain and operate the Mass Rapid Transit (MRT) system that was recently completed here.
