Minister: MRT2 rationalisation saved RM8.8b

Finance Minister Lim Guan Eng and Transport Minister Anthony Loke witness MRT Corp and MMC Gamuda seal an agreement on an MRT2 project in Putrajaya January 17, 2020. — Picture by Choo Choy May
Finance Minister Lim Guan Eng and Transport Minister Anthony Loke witness MRT Corp and MMC Gamuda seal an agreement on an MRT2 project in Putrajaya January 17, 2020. — Picture by Choo Choy May

PUTRAJAYA, Jan 17 — The successful rationalisation of the MRT Sungai Buloh-Serdang-Putrajaya (MRT2) project lowered construction costs by RM8.82 billion, said Finance Minister Lim Guan Eng.

He said the cost was reduced from RM39.35 billion to RM30.53 billion.

“This means up to 22.4 per cent in construction costs has been reduced, which will enable more infrastructural projects in the future,” Lim said during the signing of the supplemental agreement between MRT Corp and MMC Gamuda at the ministry complex.

The minister said the agreement will enable MRT Corp and MMC Gamuda to fully focus on completing the MRT2 project on time and under budget.

“The savings were achieved by building the project progressively to meet current demand, while providing space for upgrade for future needs.

“This was by avoiding constructing as quickly to the project’s maximum capacity, taking no heed of current demand and the unsustainable level of debt that will arise from such projects,” he said.

Lim said the approach would not compromise the MRT2’s quality, safety, and operational efficiency.  

“Other factors of the cost savings include rationalising the allocation of reimbursables, contigencies, and provisional sums.

“Scope rationalisation was also done for electrical and mechanical system works. Elevated works and underground structures were also deferred and rationalised,” he said.

The MRT2 project is currently 70 per cent complete, with its major works expected to finish in 2022 and the line becoming fully operational by 2023.

The first phase from Kwasa Damansara station to Kampung Batu station will begin operating in July next year, while the remainder from Kampung Batu to Putrajaya Sentral station will begin operating in January 2023.

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