The Fate of Penang LRT Project: Will it Survive a New Government?

Minister Confident of Project’s Viability

Economy Minister Rafizi Ramli has announced that the Penang LRT project is unlikely to be cancelled, even if a new government takes over. According to Ramli, the project is moving towards the stage where contracts will be awarded, making it too costly to scrap.

Compensation and Legal Consequences

“Once you reverse, then the government would have to pay these contractors compensation,” Ramli said, adding that Putrajaya also risked being sued if that happened. He emphasized that projects can only be cancelled during the early stages, particularly before tenders are issued. Once tenders are awarded and contracts signed, cancelling a project becomes very difficult.

Government’s Push to Finalize Contracts

Ramli said the government is pushing to finalise the contracts quickly to make sure the project progresses without disruptions. He used the East Coast Rail Link (ECRL) as an example, stating that he had opposed it when Pakatan Harapan was in the opposition due to its high cost of over RM70 billion. However, once land was acquired and construction started, cancelling it became nearly impossible.

Negotiating the Cost

“If we feel the terms of the contract do not benefit the government, we will try to renegotiate the cost,” Ramli said. He added that by the end of this government’s term, contracts would have already been awarded, making it unlikely for any government to reverse the decision.

Penang LRT Project Details

The proposed 30km Mutiara line will be built through a “single-sourcing request for proposal” mechanism, a form of direct tendering where only one supplier is selected. In this case, the federal government has announced that Gamuda Bhd subsidiary SRS Consortium Sdn Bhd has been selected.

Project Timeline

According to Transport Minister Loke Siew Fook, the project is expected to begin next year pending talks with contractors. He hopes that talks will end by the year-end. The LRT line will be fully funded by Putrajaya via MRT Corp and will run across the island in the first phase, followed by a cross-channel link to Butterworth in a subsequent phase.

Conclusion

In conclusion, the Penang LRT project is unlikely to be cancelled, even if a new government takes over. The project is moving towards the stage where contracts will be awarded, making it too costly to scrap. The government is pushing to finalise the contracts quickly to ensure the project progresses without disruptions.

FAQs

* What is the current status of the Penang LRT project?
The project is moving towards the stage where contracts will be awarded, making it too costly to scrap.
* Will the project be cancelled if a new government takes over?
According to Economy Minister Rafizi Ramli, the project is unlikely to be cancelled, even if a new government takes over.
* What is the timeline for the project’s completion?
The project is expected to begin next year pending talks with contractors, with hopes that talks will end by the year-end.