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

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