How much did Pakatan Harapan save on the LRT3 project?

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Pakatan Harapan Saved Malaysian Taxpayers RM9.72 Billion on the LRT3 Project

Pakatan Harapan (PH) administrations successfully reduced the total cost of the LRT3 project by RM9.72 billion compared to its originally approved budget. The project, which was never halted during the PH tenure from 2018 to 2020, underwent significant cost rationalisation measures that ultimately led to substantial savings for Malaysian taxpayers.
Project Cost Reduction Achieved by PH Administration

Under the PH government, the LRT3 project's budget was revised downwards by 47 per cent. Initially proposed at RM31.65 billion by Prasarana, with an additional RM22 billion government guarantee sought, the PH administration, through independent engineering consultants, managed to reduce this to RM16.63 billion. This initial reduction represented a saving of RM15.02 billion.
Reinstatement of Deferred Stations and Final Cost

The cost-saving measures implemented by PH included reducing the number of train sets, deferring the construction of five stations with initially low projected ridership, and extending the completion target to 2024. These five stations were later reinstated under a second-phase contract, which brought the total project cost to RM21.93 billion. Despite the reinstatement of these stations and other upgrades, the final cost remained RM9.72 billion less than the initial RM31.65 billion approval.
Abolition of PDP Model and Interest Savings

A key factor in eliminating cost overruns was the abolition of the Project Delivery Partner (PDP) model, which had incentivised higher project costs as contractors' fees were linked to the overall project value. This model was replaced with a fixed-price contract. Furthermore, the lower debt burden incurred by the revised project cost is anticipated to save the government up to RM10 billion in interest payments over a period of 25 to 30 years.

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How much did Pakatan Harapan save on the LRT3 project?

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