KUALA LUMPUR, July 5 – The estimated cost of the Rapid Transit System Link (RTS Link) infrastructure project had increased by 29.9 per cent or RM1.20 billion to RM5.24 billion as of Dec 31, 2023, compared to the original estimated cost of RM4.03 billion in January 2018.
According to the Auditor General’s Report 2/24, this increase was partly 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.
Additionally, 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 increase.
According to the report, the government allocation of funds for the Klang Valley Mass Rapid Transit (KVMRT) project and the RTS Link project 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 4.0-kilometre cross-border rapid transit system that connects Malaysia with Singapore, comprising two stations, namely the Bukit Chagar Station in Johor Bahru and the Woodlands North Station in Singapore.
According to project developer and asset owner, Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), the increase in project costs was unavoidable due to the impact of the COVID-19 pandemic, which led to a rise in raw material prices worldwide.
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 through the development expenditure allocation via the Ministry of Transport (MoT).
Clause 10.1 of the Project Development and Management Agreement (PDMA) stipulates that the government shall finance the development of the RTS Link infrastructure according to the estimated project cost of RM5.24 billion as stated in Clause 6.3.
Disbursement of the fund shall 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 report, the MoT had disbursed RM1.94 billion or 37.1 per cent of the government’s total approved allocation of RM5.24 billion to MRTS as of Dec 31, 2023.
A total of RM1.55 billion or 29.6 per cent was spent on payments to contractors and consultants.
