What Cabinet approval reduced LRT3 costs from RM31.65b?

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Cabinet Approval Led to Significant Reduction in LRT3 Project Costs

The Cabinet approved a substantial cost revision for the LRT3 project, reducing its estimated expenditure by 47 per cent. This decision, part of a broader rationalisation effort, brought the project's cost down from RM31.65 billion to RM16.63 billion, resulting in savings of RM15.02 billion for Malaysian taxpayers.
Rationalisation Measures Implemented

The rationalisation exercise undertaken by the Pakatan Harapan administration involved several key measures aimed at cutting expenses. These included reducing the number of train sets procured for the line and deferring the construction of five stations that initially had low projected ridership. Furthermore, the project's completion target was extended.
Project Continuation and Cost Review

Despite suggestions of a halt, the LRT3 project continued without interruption after Pakatan Harapan assumed office in 2018. With the project approximately 9 per cent complete in mid-2018, independent engineering consultants were appointed to review the scheme. This review led to the recommendation of specific cost-rationalisation measures.
Savings Compared to Original Approvals

The revised cost of RM16.63 billion represented a significant saving when compared to the initial approvals. The previous Barisan Nasional administration had approved RM9 billion in 2015, but by March 2018, work package contracts worth RM15.2 billion had already been awarded. Considering land acquisition, consultancy fees, and other associated costs, Prasarana had sought a revised budget of RM31.65 billion. The subsequent rationalisation, even after the reinstatement of five stations and additional upgrades in a second-phase contract bringing the total cost to RM21.93 billion, still resulted in savings exceeding RM9.72 billion compared to the original RM31.65 billion figure.

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What Cabinet approval reduced LRT3 costs from RM31.65b?

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