Dr M: New S'pore-M'sia RTS plan to save taxpayers RM1.77bil
Thursday, 31 Oct 20195:00 PM MYT
By NELSON BENJAMIN and MOHD FARHAAN SHAH
image: https://apicms.thestar.com.my/uploads/images/2019/10/31/359106.JPG
JOHOR BARU: The new proposed Rapid Transit System (RTS) between Malaysia and Singapore will save taxpayers at least RM1.77bil.
Prime Minister Tun Dr Mahathir Mohamad said the new cost estimated for the project would be about RM3.16bil compared with the original amount of RM4.93bil under the previous government.
"This will be 36% less than the original amount," he said after visiting the Bangunan Sultan Iskandar Customs, Immigration and Quarantine complex here on Thursday (Oct 31).
He stressed that the new RTS project would involve changes to the project structure, scope and specifications.
"An important feature of the revised project structure of the RTS Link is the involvement of the developer/owner of the Bukit Chagar land to fund and enable the project with the land cost waived," he added.
"Coupled with optimised costs in construction and rail systems, the government achieves substantial savings, hence making the project more financially viable," he added.
He stressed that Prasarana Malaysia Bhd (PMB) would remain as Malaysia's representative in the joint venture operating company (JV OpCo).
Dr Mahathir added that PMB was mandated by the government to consult with the Singapore rail company SMRT to finalise the terms of the joint venture agreement.
He added that the government was committed to addressing the congestion issue between Johor Bahru and Singapore in a comprehensive manner by working together with Singapore.
"We believe that RTS will become the preferred choice of transport for the tens of thousands of people who want fast, reliable and affordable service for their daily commute," he added.
Initially targeted for completion by Dec 31,2024, the 4km RTS will be the second rail link between the two countries after the KTM Tebrau shuttle service.
However, the agreement with Singapore spells out that the KTM shuttle train service will have to cease operating within six months of the RTS starting operations.
Should Malaysia choose to scrap the RTS project, it may have to pay Singapore up to RM200mil for the preparatory work that the republic has done on its side.
Read more at https://www.thestar.com.my/news/nation/2019/10/31/dr-m-new-s039pore-m039sia-rts-plan-to-save-taxpayers-rm177bil#BQrt0v2GXTh5v2oh.99
