MoF to stop funding LRT3 unless cost falls drastically

KUALA LUMPUR: The Ministry of Finance (MoF) will not support any additional funding required for the Light Rail Transit Line 3 (LRT3) unless the cost is "significantly rationalised" without compromising the rail network's integrity, safety and service quality.
In a statement today, Finance Minister Lim Guan Eng said the ministry had requested project owner Prasarana Malaysia Bhd to drastically review the cost to ensure its viability.
"The projected total cost of RM31.45 billion, due to poor management by Prasarana Malaysia, requires drastic reductions to make LRT3 feasible and cost-effective," he said.
In 2015, Prasarana Malaysia secured a government guarantee for a RM10 billion bond facility to fund the project.
However, the company requested an additional RM22 billion in government guarantee on March 30 this year to ensure funding for the project's construction and completion, Lim said.
The minister said certain news reports had indicated that the cost could be slashed by RM6 billion.
"The MoF wishes to state that much more than RM6 billion must be reduced if the LRT3 project is to proceed," he added. — Bernama