KUALA LUMPUR: Former finance minister Lim Guan Eng and his former political secretary Tony Pua have defended the Pakatan Harapan (PH) government’s handling of the LRT3 project, saying it was “never stopped, stalled or suspended” during the coalition’s administration from 2018 to 2020.
Their response came after the Sultan of Selangor, Sultan Sharafuddin Idris Shah, in a statement published on his official Facebook page following the launch of the Shah Alam LRT3 line on June 28, praised both Prime Minister Datuk Seri Anwar Ibrahim and former prime minister Datuk Seri Najib Razak for their respective roles in the project.
Sultan Sharafuddin also criticised the previous PH administration’s decision to reduce the project’s scope and budget in 2018.
“We respectfully thank Tuanku for his observations on the completion of the LRT3 project. We wish to respectfully and humbly clarify several matters, all of which can be verified with Prasarana and MRCB Bhd,” they said.
“The LRT3 project was never stopped, stalled or suspended during the Pakatan Harapan administration from 2018 to 2020.
“We would also like to affirm that the then PH administration fully supported the LRT3 project and regarded it as a critical and essential initiative to improve the daily lives of Klang Valley residents.”
The duo said the project inherited by PH in 2018 had already exceeded its original financial framework. They said the Barisan Nasional administration under former prime minister Datuk Seri Najib Razak had approved RM9 billion for the project and a RM10 billion government guarantee in 2015. However, by March 2018, Prasarana had awarded work package contracts worth RM15.2 billion.
According to their statement, after accounting for land acquisition, consultancy fees, Project Delivery Partner (PDP) costs and financing expenses, Prasarana subsequently sought a revised project budget of RM31.65 billion, together with an additional RM22 billion government guarantee.
Lim and Pua said work on the project continued after PH took office while the government worked with the appointed PDP, MRCB-George Kent, to reduce costs rather than halt construction.
“As the LRT3 project was only nine per cent complete at that point, we took the opportunity to appoint independent engineering consultants to review the project and recommend cost rationalisation measures to ensure proper accountability,” they said.
They added that the review was also necessary because of “substantial hidden off-balance-sheet liabilities incurred during the Najib administration”, alongside debts arising from the 1MDB scandal.
The former finance minister and his adviser defended the Cabinet’s decision to reduce the project cost by 47 per cent, from RM31.65 billion to RM16.63 billion, saying the review prioritised “functionality and practicality over luxury and grandeur”.
They said there was no justification for constructing MRT-sized stations for an LRT project.
Among the measures implemented were reducing the rolling stock order from 42 six-car train sets to 22 three-car train sets based on passenger demand projections, deferring five stations with low projected ridership until demand justified their construction, extending the completion target from 2020 to 2024, and replacing the percentage-based PDP model with a fixed-price contract.
The pair said the five deferred stations have since been reinstated under a RM5.3 billion Phase 2 contract, increasing the total project cost to RM21.93 billion.
Even so, they said the completed project remained RM9.72 billion below the RM31.65 billion cost approved in 2018.
“The LRT3 project has now been successfully completed, with additional upgrades and improvements incorporated, while still delivering upfront savings of RM9.72 billion for Malaysian taxpayers,” they said.
They added that the lower project cost was expected to save the government up to RM10 billion in interest payments over the next 25 to 30 years, while insisting the savings “were not achieved at the expense of passenger capacity or the functionality of the LRT system”.
They also expressed appreciation for Sultan Sharafuddin’s concern over the project, saying they agreed the LRT3 line “plays an important role in reducing traffic congestion, shortening travel times and serving as an economic catalyst for development in Selangor”.
Sultan Sharafuddin had also criticised the Finance Ministry’s 2018 decision under Lim to scale back the project, saying the move was made on the pretext that it was a “mega project” and arguing those responsible “failed to understand that the primary purpose of the LRT3 project was to meet the needs and requirements of the people”.
At the same time, the Selangor Ruler emphasised that the LRT3 line was the product of successive administrations and cautioned against any single party claiming sole credit for its completion.
“In truth, this project is the outcome of continuous planning, commitment, and cooperation among various parties across several administrations, for the benefit of the people of Selangor as a whole,” he said.
