Monday, 7 March 2011

The new Klang Valley MRT project, price balooned to RM 50 billion before project starts? Can SPAD slow down and step back to see what is going on

1. The new MRT for the Klang Valley started with a humongous estimated cost of RM36 Billion (purportedly on 2009 prices) but is now estimated to be a mind boggling RM50 Billion (2011 prices) according to SPAD. 

  1. The prices of property and land in the Klang Valley are shooting through the roof before the announcement of this project and is accelerating upwards as we speak, does this mean that when the actual construction starts it will be more than RM 50 Billion? 
  2. How much more? 
  3. Will there be a limit? 
  4. Who has control over the limit?
  5. Can SPAD show the cost-benefit analysis of the project?
  6. Remember the very expensive lesson of the PKFZ scandal where cost could balloon beyond all recognition!
  7. What about the development projects planned thru' out the country, wouldn't they be affected by the MRT cost over runs?
  8. Can this blessed nation afford the mammoth debt to be incurred in financing this gargantuan costing project?

2. The Government/SPAD  ought to slow down and sit back a while with the implementation to re-study the project routes and have a second third or fourth look at the project. 

3. There is no haste, while the Government/SPAD is deliberating and deciding on its options, the plan for a Bus based Mass Rapid transit system could be put in place first before the mammoth MRT project be launched.

4. I repeat, there is no haste to start the new MRT project as the Bus based Rapid Transit system could be put in place at a comparatively small portion of the new MRT cost. More time should be spent to study the routes to ensure optimisation of cost. This is public money spending, the Government should practice what it preaches.

The news from The Star:

MRT project cost now estimated to reach RM50b

PETALING JAYA: The construction cost of the entire 150km Mass Rapid Transit (MRT) urban transport project may run up to RM50bil, three sources said, two of whom are directly involved in the project. The third is an independent party doing consulting work for the MRT line.

Read the rest here.

Tony Pua has some tough questions for the Government and SPAD here as well.

1 comment:

Abd Muhaimin said...

very good info.
i'm also sharing some info for property nearby MRT KL