GEORGE TOWN: MRT Corp today addressed recent reports on the budget ceiling for the Penang Mutiara Line light rail transit (LRT) project, stating that the RM16.8 billion figure reflects the expanded project scope and prevailing market conditions, not cost overruns.
The LRT project, originally known as the Bayan Lepas LRT Line, was first estimated at RM10 billion in 2016 for a route stretching from Silicon Island to Komtar.
However, it said the project has gone through major changes since then.
“In early 2024, the federal government assumed control of the initiative and extended the alignment from Macallum in George Town to Penang Sentral in Butterworth.
“This move expanded service coverage and raised the project cost to RM13 billion,” it said in a statement today.
After being appointed as the project developer and asset owner, MRT Corp carried out detailed technical studies, refined the route, and conducted engineering evaluations to set a realistic budget.
These efforts included engaging two independent quantity surveying firms to validate the cost estimates.
According to MRT Corp, the revised RM16.8 billion ceiling — approved by the federal government in December 2024 — accounts for several cost pressures, including global supply chain inflation, rising land values, and additional infrastructure work at Macallum and Silicon Island.
Despite the higher ceiling, MRT Corp said it has been tasked with keeping actual spending below this amount through competitive tenders and value management practices.
© New Straits Times Press (M) Bhd
