PUTRAJAYA, Dec 22 — The savings in the total development cost (TDC) of RM11 billion on the East Coast Rail Link (ECRL) is contributed by among others from the realignment of the track at Section C involving the Temerloh, Serendah-Port Klang alignment.
The Ministry of Transport said the reduction in the original TDC in 2017 from RM85.97 billion to the current cost of RM74.96 billion was achieved following the implementation of total value engineering (VM).
“The ministry also stresses that the cost of ECRL 3.0 (current project) construction which is lower was realised thorough a series of negotiations to review the ECRL contract which was finalised in 2019 and 2022,” according to the ministry in statement today.
Prime Minister Datuk Seri Anwar Ibrahim yesterday in a media conference announced that the government will proceed with the project with cost reduction which would not bring much changes to avoid delaying and complicating works as well as existing negotiations.
As a comparison, according to MOT, the original TDC for the ECRL project which was launched in 2017 (ECRL 1.0) amounted to RM85.97 billion encompassing construction cost of RM66.78 billion and other development costs such as (Interest During Construction -IDC), land acquisition, utility transfer and connection fees as well as operating expenses totalling RM19.19 billion.
Meanwhile, the TDC for ECRL 3.0 is estimated to amount to RM74.96 billion including the much lower construction cost of RM50.27 billion, while other development costs such as IDC, land acquisition, utility transfer and connection fees and operating expenses amounted to RM24.69 billion.
MOT also expressed its appreciation to the Prime Minister for his continued support to ensure that the ECRL project can be completed within the stipulated period, further benefiting the people and the country as planned.
The ministry said Malaysians can now enjoy the ECRL project which has been upgraded for passenger and cargo services, which is the construction of a 665-kilometre long rail from Kota Bharu to Port Klang.
Besides, the construction of 20 stations, the construction of the Serendah Bypass would smoothen the movement of cargo from the north as well as the extension of the rail from Jalan Kastam Station to both Westport and Northport terminals.
