KLANG: Former finance minister Lim Guan Eng and his former aide Tony Pua have given an explanation regarding the revision of the LRT3 project budget during the former's tenure.
Their explanation follows Selangor Ruler Sultan Sharafuddin Idris Shah's contention that Lim and his adviser Pua had slashed the budget on the grounds that it was a "mega project".
Sultan Sharafuddin had said on Wednesday (July 1) in his royal address in conjunction with the opening of the Shah Alam LRT3 line that it was not a mega project for prestige but rather a project for the interests and well-being of the people.
Lim and Pua explained that the reduction of the budget was made due to increasing project costs as well as the intent to prioritise functionality, without impacting passenger demand.
The duo said the move was also aimed at saving RM10bil in interest over the next 25 to 30 years.
"We would like to reiterate the fact that these savings to the government were not at the expense of the LRT passenger volume and functionality," they said in a statement.
They added that the cut in the budget and the subsequent saving of funds from the move allowed the government to use the funds to finance other benefits for the people as well as developmental expenditure.
Lim and Pua said former prime minister Datuk Seri Najib Tun Razak had allocated RM9bil for the LRT3 project and provided concessionaire Prasarana with a RM10bil government guarantee to raise funds in 2015.
"However, Prasarana awarded various work package contracts (WPCs) amounting to RM15.2bil in March 2018, significantly exceeding the approved RM9bil budget," said the duo.
They also clarified that the project had never stopped, stalled, or been suspended during the Pakatan Harapan administration between 2018 and 2020.
"We also affirm that the then Pakatan administration fully supported the LRT3 project and considered it a critical and essential initiative to improve the daily lives of Klang Valley residents," said Lim and Pua.
