ECRL: Savings achieved through multiple contract renegotiations
ROSKHOIRAH YAHYA
SHAH ALAM - Cost savings for the East Coast Rail Line (ECRL) Project construction were achieved through a series of ECRL contract assessments that were finalised in 2019 and 2022.
The Transport Ministry said several factors contributed to the reduction of the overall cost, including the implementation of the Value Engineering VM and the realignment of the ECRL track on section C (Temerloh Serendah-Pelabuhan Klang) "The total development cost (TDC) for ECRL 1.0 amounted to RM85.97 which includes the construction cost of RM66.78 billion, operating expenses amounting to RM19.19 billion and other development costs such as interest during construction (IDC), land acquisition, relocation utilities and connection fees.
"In comparison, the TDC for ECRL 3.0 which is currently under construction is estimated to cost RM74.96 billion, consisting of a much lower construction cost of RM50.27 billion with other development costs such as IDC, land acquisition, utility transfer and connection fees as well as operating expenses amounting to RM24.69 billion," the Transport Ministry elaborated in its statement.
On Wednesday, Prime Minister Datuk Seri Anwar Ibrahim announced that the government has managed to cut the ECRL construction costs and had saved RM11.01 billion compared to the original cost of RM85.97 billion set in 2016.
The statement said with the cost of construction currently at RM50.27 billion, Malaysians would be able to enjoy more value for passenger and cargo services.
"The project will involve the construction of rail tracks as far as 665 kilometres from Kota Bharu to Port Klang, the construction of 20 stations, the construction of Serendah Bypass which facilitates the transportation of cargo from the north as well as the extension of the rail from Jalan Kastam Station to both Westport and Northport terminals.
"In addition, the ministry would like to express its appreciation to the Prime Minister for his continuous support to ensure that the ECRL project could be completed within the stipulated period, which will benefit the people and the country as planned," he said.
