What specific measures were taken to rationalise LRT3 costs under PH?

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Specific Cost Rationalisation Measures for the LRT3 Project Under Pakatan Harapan

During the Pakatan Harapan (PH) administration, significant measures were implemented to rationalise the costs of the LRT3 project, resulting in substantial savings for Malaysian taxpayers. These actions were taken after independent engineering consultants were appointed to review the project's scope and identify areas for cost reduction. The project, which was approximately 9 per cent complete in mid-2018, underwent a comprehensive review that led to a revised budget and a more efficient delivery model.
Reduction in Train Sets and Station Deferrals

A key strategy involved reducing the number of train sets procured for the line. Furthermore, five stations that were initially projected to have low ridership were deferred. Provisions were made for these stations to be constructed at a later stage, allowing for immediate cost savings. The completion target for the project was also extended from 2020 to 2024, a move intended to prevent additional costs associated with accelerating construction timelines.
Abolition of the Project Delivery Partner (PDP) Model

The Project Delivery Partner (PDP) model, which had been in place previously, was abolished. This model was found to incentivise higher project costs as the contractors' fees were directly tied to the overall value of the project. To mitigate this, the PH administration replaced it with a fixed-price contract. This change aimed to eliminate the risk of cost overruns and ensure greater financial control over the project's execution.
Reinstatement of Deferred Stations and Revised Total Cost

Following the initial cost-saving measures, the five deferred stations were eventually reinstated. This occurred under a second-phase contract valued at RM5.3 billion, which also encompassed additional trains and other upgrades. The inclusion of these stations brought the project's total cost to RM21.93 billion. This figure remained significantly lower than the initial revised budget sought by Prasarana.
Significant Financial Savings and Projected Interest Cost Reduction

The overall rationalisation efforts under the PH administration led to upfront project cost savings exceeding RM9.72 billion for Malaysian taxpayers, when compared to the original RM31.65 billion revised budget. Beyond these direct savings, the reduction in the project's debt burden is projected to save the government up to RM10 billion in interest costs over a period of 25 to 30 years. These savings allowed funds to be redirected towards other welfare programmes and development spending.

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What specific measures were taken to rationalise LRT3 costs under PH?

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