KUALA LUMPUR: Contractors for the LRT Shah Alam Line are liable for RM2.729mil in liquidated damages for every day the project is delayed, says Datuk Hasbi Habibollah.
The Deputy Transport Minister told the Dewan Rakyat on Monday (June 29) that the project was awarded on a fixed-price turnkey basis, which means that there has been no increase in the contract costs despite the delays.
"There has been no increase in costs, as this project is being implemented under a fixed-price turnkey contract.
"In fact, the contractor is liable to pay RM2.729mil in damages for each day the project is delayed.
"The project is one of the government's strategic investments to strengthen the country's public transport infrastructure and is expected to serve as a catalyst for greater public transport usage in Malaysia," he said during a question and answer session in the Dewan Rakyat.
Prasarana Bhd first announced plans for the LRT Shah Alam Line in 2013, with construction beginning in 2016.
However, the project was halted in 2018 for a review following a change of government and concerns over funding.
Five planned stations were subsequently dropped as part of a cost-cutting exercise in 2018.
Responding to a supplementary question from Muhammad Fawwaz Mohamad Jan (PN–Permatang Pauh) on whether the cost-cutting measures introduced in 2018 would result in overcrowding similar to that experienced on the Kelana Jaya Line, Hasbi said the current system has sufficient capacity to meet projected demand until around 2040.
He said average daily ridership is projected to reach 67,260 passengers in 2026, 126,000 in 2030, 219,100 in 2040 and 324,000 in 2050.
"As such, we are confident that the system will be able to meet current and medium-term demand.
"That said, the project also includes a planned second phase. The current phase is intended to meet demand up to 2030.
"Under the second phase, the plan is to add five more stations and seven additional train sets," he said.
On Sunday (June 28), the government announced that the LRT Shah Alam Line will be expanded with seven additional train sets and five new stations to meet future demand and strengthen connectivity.
Transport Minister Anthony Loke said construction of the five new stations is expected to begin in the fourth quarter of this year, following approval from the Finance Ministry.
The five new stations are Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanik.
The RM16.63bil Shah Alam Line, which is expected to carry 67,000 passengers a day in its first year of operations, began service Monday (June 29).
