Business

ECRL: realignment among reasons for RM11 bil in savings, says MoT

Lower cost realised through negotiations to review contract, says ministry

Updated 3 years ago · Published on 22 Dec 2022 5:05PM

ECRL: realignment among reasons for RM11 bil in savings, says MoT
The Transport Ministry says the reduction of the original total development cost in 2017 from RM85.97 billion to the current RM74.96 billion was achieved with the implementation of total value engineering. – Bernama pic, December 22, 2022

PUTRAJAYA – The savings in the total development cost (TDC) of RM11 billion of the East Coast Rail Link (ECRL) is contributed by, among others, the realignment of the track at Section C involving the Temerloh, Serendah-Port Klang alignment.

The Transport Ministry said the reduction of the original TDC in 2017 from RM85.97 billion to the current RM74.96 billion was achieved with the implementation of total value engineering.

“The ministry also stresses that the lower cost of ECRL 3.0’s construction was realised through a series of negotiations to review the ECRL contract, which were finalised in 2019 and 2022,” the ministry said in a statement today.

Prime Minister Datuk Seri Anwar Ibrahim said in a media conference yesterday that the government will proceed with the project, with cost reductions that will not bring many changes to avoid delaying and complicating work and existing negotiations.

As a comparison, the original TDC for the ECRL project launched in 2017 (ECRL 1.0) amounted to RM85.97 billion, encompassing the construction cost of RM66.78 billion and other development costs such as interest during construction, land acquisition, utility transfer, and connection fees, as well as operating expenses totalling RM19.19 billion.

Meanwhile, the estimated TDC of RM74.96 billion for ECRL 3.0 includes the much lower construction cost of RM50.27 billion, while other development costs amount to RM24.69 billion.

The ministry said Malaysians can now enjoy the ECRL project, which has been upgraded for passenger and cargo services, including the construction of a 665km-long rail from Kota Baru to Port Klang. – Bernama, December 22, 2022

Related News

Malaysia / 6mth

ECRL construction work at MRR2 temporarily halted for investigation – MRL

Malaysia / 6mth

Temporary bridge at ECRL construction at MRR2 collapses, car crushed

Malaysia / 2y

Penang’s LRT alignment headed for revamp as Transport Ministry takes over

Malaysia / 2y

Putrajaya, Penang partnering for free ferry, bus rides during Thaipusam

Malaysia / 2y

Driving licence, road tax renewal can be done via MyJPJ app from Feb 1

Malaysia / 2y

Should senior citizens be screened when renewing their driving licence?

Spotlight

Malaysia

Former head of a ministry's corporate communications unit acquitted of bribery charge

Malaysia

Two sisters die trapped in Johor house fire as escape routes cut off by flames

Malaysia

NS election speculation intensifies as Aminuddin granted audience with state ruler

Malaysia

Teenager who drove recklessly, causing death remanded for further investigation

Malaysia

Police looking for trio involved in violent armed robbery in Penang (video)

Malaysia

Family of five killed as car crashes into water pipe in Serian

Malaysia

'I was once spat on by a pakcik' — Marina denies fear of contesting Malay-majority seats

Malaysia

Jewellery shop among six premises destroyed in fire (video)

You may be interested

Business

Private capital set to power AI data centre boom as global tech capex forecast raised to US$5.3 trillion

Business

Oil surges as fears of Hormuz shutdown overshadow diplomatic uncertainty

Business

Ringgit eases against US dollar as strong American data and Gulf tensions boost greenback

Business

SpaceX targets historic US$75 billion IPO in record-breaking market debut plan