RTS back on track: Cost down by a third, Johor sultan to chip in
The Rapid Transit System (RTS) is back on track after Putrajaya secured cost savings and cooperation from landowners, including the Johor Sultan.
In a statement today, the government announced that the project will now cost RM3.16 billion, down 36 percent from the previous RM4.93 billion price tag set by the previous administration.
"An important feature of the revised project structure of the RTS is the involvement of the developer/owner of the Bukit Chagar land to fund and enable the project with the land cost waived...
The Rapid Transit System (RTS) is back on track after Putrajaya secured cost savings and cooperation from landowners, including the Johor Sultan.
In a statement today, the government announced that the project will now cost RM3.16 billion, down 36 percent from the previous RM4.93 billion price tag set by the previous administration.
"An important feature of the revised project structure of the RTS is the involvement of the developer/owner of the Bukit Chagar land to fund and enable the project with the land cost waived.
"Coupled with optimised costs in construction and rail systems, the government achieves substantial savings, hence making the project more financially viable," said the government.
The next step for both Malaysia and Singapore is a new bilateral agreement. The previous one was signed in January 2018. It was suspended until today to allow Malaysia to come up with a new proposal to reduce cost.
The statement was distributed at a press conference in Johor Bahru today, attended by Prime Minister Dr Mahathir Mohamad, Finance Minister Lim Guan Eng, Transport Minister Anthony Loke, Johor Menteri Besar Dr Sahruddin Jamal and Economic Affairs Minister Azmin Ali.
Sultan's role
When asked to clarify what was meant by the statement which said the owner of the Bukit Chagar land would "fund and enable" the project, Mahathir passed the microphone over to Loke who explained that a RTS station has to be built on land owned by the Johor Sultan.
"His majesty granted an audience (with federal government officials) and decreed that he will cooperate with the federal government and have the RTS station built there.
"We will initiate a private-financing initiative [...] More details will be announced later," he said.
When asked about the value of the land being contributed to the RTS project, Loke replied: "RM800 million to RM900 million".
He said apart from savings from land acquisition, other savings were achieved in terms of engineering and a redesign. Loke said more details will be revealed when the new bilateral agreement is signed.
In an exclusive report in May, Malaysiakini had revealed that the Johor sultan had gained ownership of a 4.5-hectare plot of land in Bukit Chagar on Nov 19, 2017.
Land searches also revealed that the Johor sultan gained ownership of a 2.4-hectare plot, which was actually part of the sea, on Aug 17, 2014.
At the time, it was estimated that 13 percent of the RTS price tag was for land acquisition.
On May 4, the Johor palace said the Johor ruler was unaware that land under his ownership was involved in the RTS project and was willing to give it up for free.
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