East Coast Rail Link proceeds at a cost of RM74.96 billion – RM11.01 less than original quote
The cost of East Coast Railroad (ECRL) fell to RM74.96 billion, according to prime minister Datuk Seri Anwar Ibrahim. The new figure is RM11.01 billion lower than the initial cost of RM85.97 billion approved in 2016as reported by Edge.
In a press conference that aired on Wednesday (December 21), Anwar revealed the cost reduction has occurred despite a “slight increase” in costs incurred due to the new reorganization. “Although there is a slight increase [in cost] to accommodate the ECRL project reorganization we approved, [we managed to] reducing the total cost to RM11.01 billion,” he said.
The ECRL project was first launched in 2017 and its progress has been chaotic, with various metrics presented throughout the years. To make it easier to digest, the transport kit (currently headed by Anthony Loke) recently released a detailed breakdown of the project’s costs over the course of several years.
The initial cost of the ECRL project (ECRL 1.0) when it was first introduced was RM85.97 billion, of which RM66.78 billion was construction costs, while the remaining RM19.19 billion was for construction costs. other development costs (land and utility costs, project cancellation/delay costs, loan interest during construction and operating costs).
In 2018, Prime Minister Tun Dr Mahathir Mohamad cancel project ECRL due to cost concerns, but then reborn in 2019. The cited overall cost of the revised ECRL 2.0 was RM66.02 billion, with construction costs reduced from ECRL 1.0 to RM44 billion, but other development costs increased to RM22.02 billion. RM.
The latest figure under the unified government is RM74.96 billion as mentioned, with construction costs rising to RM50.27 billion and other development costs to RM24.69 billion. The department also emphasized that the cost reduction compared to ECRL 1.0 was achieved through a series of ECRL contract negotiations that were completed in the 2019 and 2022 contracts.
“A number of factors including the comprehensive implementation of value engineering and the realignment of ECRL routes on Section C (Temerloh-Serendah-Port Klang) have contributed to the overall reduction in construction costs,” it said. .
When completed, the 665km railway project from Kota Bharu to Port Klang will have 59 tunnels and 20 stations for passenger and freight transport. It will also see the construction of the Serendah Bypass to facilitate the movement of goods from the north as well as a rail extension from Jalan Kastam station to both Westport and Northport stations.
ECRL is expected to start operating in January 2027 and is currently 30% complete as of May this yearWee previously said that the goal is to be 37% complete by the end of 2022.
