GEORGE TOWN – There is a silver lining in Putrajaya not providing a government guarantee on Penang’s application for an Asian Development Bank (ADB) loan to fund its light rail transit (LRT) project, said state civil groups.
Former Penang Island city councillor Lim Mah Hui said this may be a good opportunity for the state to review the Penang Transport Master Plan (PTMP), of which the LRT project is part.
“There is no doubt that the decision by the federal government is vindictive. After all, the federal government can spend billions on all the mega projects, but can’t give a guarantee for RM2 billion for Penang?
“However, I don’t believe the project should go through, and this may be the silver lining.”
The LRT is not needed as there are newer, better systems like the autonomous rail rapid transit (ART) – a cross between a bus and a train – available, he said.
He said the LRT will require the laying of tracks and pylons, a costly process that is estimated to take five to seven years to complete.
The ART system, meanwhile, only requires stations, lines to be painted on the road, and sensor-guided trams. It can be set up within a few months at a tenth of the cost of the LRT, if not less.
The RM46 billion PTMP encompasses an undersea tunnel connecting the island to the mainland, highways, and LRT and monorail links. The LRT project, covering a 29.9km route with 27 stations, is estimated to cost RM8 billion.
Based on figures given by SRS Consortium Sdn Bhd, the state-appointed project delivery partner for PTMP, the LRT’s annual operating cost will be RM170 million, said Lim.
He said claims that the project will break even with ticketing are “nonsense”.
“Based on my calculations, there will be a RM120 million to RM130 million deficit every year.”
An ART tram with two carriages can carry about 200 people, he said, effectively allowing 100 to 200 cars to be taken off the roads.
“You give incentives to encourage the public to take public transport by making it reliable, dependable. Then, you make it expensive for people to drive.
“Singapore does it very well. It is not rocket science. So, I think the excuse about taking up road space is nonsense.”
Lim stressed that the project’s critics are not against development, but against “bad development”.
“Development is not simply about constructing a 40-storey building or having more roads. You must have balanced and sustainable development with good planning.
“No one is against development. The question is, what kind of development?”
State refuses independent review
Penang Forum member Khoo Salma Nasution said the federal government should only back projects with a strong “business case” and clear public benefit.
Experts have questioned the LRT’s justification and unrealistic ridership projection, she said, and believe the rail link will be too expensive to maintain.
Despite Penang Forum’s repeated requests, the state government has refused to open up PTMP to independent review and a cost-benefit analysis, she said.
She hopes that a “better, cheaper, faster” and more inclusive transport master plan is considered and implemented.
“If, in a hypothetical case, the LRT alignment or public transport design is not the best one objectively (open to public scrutiny and independent review, and debate), then there can be reason to suspect corruption.
“For example, why is (the LRT) going past shopping complex A instead of B, which is more densely populated? Why is the data for alignment, ridership projection and more not made explicit?
“In the case of the Penang LRT, it is based on an overinflated population projection that is counter to what the Statistics Department has forecast.”
According to Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, Putrajaya has not given any guarantee for Penang’s loan application to ADB for the rail project.
He said if the state government wants to continue with the RM2 billion loan, it must be provided for in the Budget and 12th Malaysia Plan rolling plan, and the loan must also be submitted to the Economic Planning Unit.
Green Hero founder Calvin Chan lauded the Finance Ministry for not acting as guarantor, saying the project is too risky.
“If Penang decides to cancel the plan, the federal government will have to pay that amount of money to the bank.
“So, why take a risk with such a move, when RM2 billion can be used to finance other projects that have higher credibility?
“We must also be aware that this is a tough time for the Malaysian economy. The ministry is just being cautious with their spending.” – The Vibes, December 3, 2020
