KUALA LUMPUR, Feb 28 — The Penang state government has yet to finalise the cost of its Transport Master Plan now estimated to be a minimum of RM40 billion, said Chief Minister Chow Kon Yeow.
He said this was because its scope was also not yet fixed as the state government is still awaiting the Transportation Ministry’s approval for the Penang Light Rail Transit (LRT) project as well as the reclamation project south of the island.
“Unless we get conditional approval, we will be unable to move into the next level of work, which includes the final design and the actual cost estimation when tendering the projects,” he told BFM’s Joyce Goh during the Breakfast Grille show.
Chow said the type of system for the LRT is also yet to be decided, as there is the option of choosing either the aggregate or elevated system, with the latter costing more.
“When we tender we will be able to get the final cost. But our financing model is through reclamation,” he said.
Chow explained the land generation from reclamation project is expected to be sufficient to finance the project, as well as make future land available for it.
“So the RM40 billion price tag includes all of this. We are hoping to get approval by the first half of this year.
“Hopefully the ministry will give conditional approval, and we can work with complying with them,” he said, referring to the LRT project.
On the reclamation project itself, Chow said it will have to be presented to the National Physical Planning Council chaired by the Prime Minister, which will convene on April 16.
“It will work on the details, including its costs and design. Tenders will be available for every work component, which I think can only come in six to 12 months following approval,” he said.
