LRT3 to proceed on new terms, RM16.6bil budget

KUALA LUMPUR: The Light Rail Transit Line 3 (LRT3) project has received the Government’s greenlight to continue at a total project cost of RM16.6bil, according to separate filings by Malaysian Resources Corp Bhd (MRCB) and George Kent (M) Bhd after the market closed on Wednesday.

Shares in the two companies shot up before the news broke out.

“Prasarana has via its letter dated Oct 16 to MRCB George Kent Sdn Bhd (MRCB-GK), informed that the Government has agreed to continue with the project at a total cost of RM16.6bil, including land acquisition costs, interest during construction and other costs,” the two companies said in the separate filings with Bursa Malaysia.

The companies said the implementation concept of the project will be remodelled from a project delivery partner (PDP) regime to a fixed price contract regime.

The two companies did not elaborate on the terms of the new contract regime, but said that further announcement will be release as and when there is a material development in relation to the project.

Shares in MRCB surged 7.5 sen or 10.42% at 79.5 sen, with 84.23 million shares transacted. Most of the transaction were done during the last hour of trade.

Meanwhile, George Kent also saw a similar last-minute push as the stock ended 13 sen, or 12.9% higher at RM1.14.

Finance Minister Lim Guan Eng, in July, said that actual cost of the LRT3 had jumped to RM31.45bil, compared with its original construction cost of RM9bil in 2015 when the PDP contract was awarded to MRCB-GK.