KUALA LUMPUR, July 4 — The estimated cost of the Rapid Transit System (RTS) Link project increased by 29.9 per cent to RM5.24 billion as of December 31, 2023, compared with the original RM4.03 billion in January 2018.
According to the Auditor General’s (AG) Report 2/24 , this increase was due to the expansion of the depot work scope from light to heavy maintenance, new contracts for the Traffic Diversion Scheme, and the construction of the Customs, Immigration and Quarantine (CIQ) Complex.
Supplementary infrastructure work for iconic facades and aesthetic flyover structures, additional land acquisition costs, and extra infrastructure costs for the construction of parking facilities and additional piling at the CIQ Complex also contributed to the cost hikes.
The AG report said government allocations for the Klang Valley Mass Rapid Transit and the RTS Link projects have been utilised for approved public infrastructure projects.
“However, the increase in project costs can affect the government’s current financial position,” it said.
The RTS Link is a 4km cross-border project that connects Malaysia with Singapore, comprising two stations — Bukit Chagar in Johor Bahru and Woodlands North in Singapore.
According to project developer and asset owner Mass Rapid Transit (MRT) Corporation Sdn Bhd, the increase in project costs was unavoidable due to the Covid-19 pandemic, which led to a worldwide rise in raw material prices.
There were also changes in the work scope to ensure a holistic traffic solution, as well as land acquisition costs.
On July 24, 2020, the government agreed to finance the development of the RTS Link project via the development expenditure allocation via the Transport Ministry.
Clause 10.1 of the Project Development and Management Agreement stipulates the government will finance the development of RTS Link infrastructure, according to the estimated project cost of RM5.24 billion, as stated in Clause 6.3.
Disbursement of the funds will be carried out on a quarterly basis on requests from Malaysia Rapid Transit System Sdn Bhd (MRTS) – a subsidiary of MRT Corp — which is the developer and owner of public infrastructure for the Malaysian portion of the RTS Link project.
According to the AG Report, the Transport Ministry has disbursed RM1.94 billion, or 37.1 per cent of the government’s total approved allocation of RM5.24 billion, to MRTS as of December 31, 2023.
A total of RM1.55 billion, or 29.6 per cent, was spent on payments for contractors and consultants.
— Bernama
