Home TA Online Penang’s mega-transport plans: Where is the state going to find RM25bn?

Penang’s mega-transport plans: Where is the state going to find RM25bn?

None of our leaders wants to explain why we have only 200-300 buses covering the entire state of Penang when Singapore has over 5,000 buses

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In recent days, we have been given some inkling of the total cost of Penang transport infrastructure over the next decade.

The Edge has provided some indicative figures for the elevated light rail transit’s cross-channel stretch and the systems work for the entire stretch.

That gives a total LRT cost of almost RM17.3bn – much higher than the RM10-13bn that Transport Minister Anthony Loke had quoted earlier.

Together with the Pan Island Link highway (phase 1 only) cost of RM7.5bn, the total comes up to a whopping RM25bn.

The question is, where is Penang going to find this RM25bn?

When presenting the 2024 Budget, Prime Minister Anwar Ibrahim had said that the Penang LRT with its cross-channel link as planned by the state government would cost RM10bn, and it would be financed through a public-private partnership (PPP).

Now the LRT cost has climbed from RM10bn to over RM17bn. And don’t forget the RM7.5bn for phase 1 of the Pan Island Link highway.

So, we still face a funding shortfall, even if the federal government or some private interest coughs up RM10bn.

The LRT and PIL1 were two pillars of the first phase of the “PTMP” plan put forward by SRS Consortium. Back them, this was expected to cost close to RM20bn. The state government assured the people of Penang that this first phase would be financed by sales of reclaimed land (from two of the three artificial islands) to developers.

But that financing model has flopped, and only one island will be created (for now).

So who foots the bill for the LRT and PIL1 now?

READ MORE:  Why’s the government so slow in reducing traffic congestion?

Contractors are scrambling for a slice of the civil and systems work of the LRT. That’s where the profits are to be made.

But who will actually operate the LRT once the construction is completed? Will there be anyone really enthusiastic about operating it? Note that the ridership figures (and the fares) remain uncertain while the maintenance of that ’20-storey’-high cross-channel LRT bridge won’t be cheap.

If the LRT incurs annual operating losses, who will absorb these losses? We have not received any clarity on this. By then, the present lot of political leaders would have ridden into the sunset. Not their ‘baby’, anymore! Who will have to carry it then?

The tragedy is that these two mega-projects attempt to address congestion on Penang Island only, apart from the cross-channel link to the mainland coast.

What about public transport for people on Penang Island living in areas not covered by the LRT line?

And what about those on mainland Penang? Some 54% of the 1.7 million people of Penang live on the mainland. Mainland Penang, at 748 sq km, is slightly bigger than Singapore. And yet, the mainlanders do not have a decent public transport system. How much longer must they wait?

The tragedy is that for less than half that RM25bn tab, we could have a more affordable public transport network – a more sustainable mobility system – that covers the entire state.

As it stands, it will cost many, many billions more for the LRT to cover the entire state. Perhaps add another RM15-20bn to the RM25bn tab?

READ MORE:  Penang’s cross-channel LRT will hover '20 storeys' above the sea!

When considering these multi-billion figures, remember that the Penang state government’s annual budget is only around RM1bn.

None of our leaders, federal or state, wants to explain why we have only 200-300 buses covering the entire state of Penang. Look no further than Singapore, which has over 5,000 buses.

Believe it or not, every day Singapore’s buses carry more passengers than its trains. Over in London, about 30% of residents opt to cycle or walk because of the more conducive infrastructure.

Why can’t the Malaysian federal government work with the Penang government to upgrade the state’s bus network and improve walkability to entice more people to leave their private vehicles at home?

Improving the bus, ferry, cycling and pedestrian network is low-hanging fruit that is more easily achievable in the short term. Major bus routes can later be upgraded to bus rapid transit or trams. The ferry service can be expanded to criss-cross the channel at various points. Most of this was recommended by the state government’s original consultants, Halcrow.

Innovative measures such as discounts on Penang bridge tolls can be offered to motorists with passengers in their vehicles to encourage car-pooling.

Unfortunately, all these doable options are probably too cheap for those fixated on mega-projects! After all, lucrative profits stand to be made by those constructing the infrastructure.

Sadly, though, the enormous capital cost and any operational losses will ultimately have to be borne by the public.

Anil Netto is a former Penang Transport Council member.

The views expressed in Aliran's media statements and the NGO statements we have endorsed reflect Aliran's official stand. Views and opinions expressed in other pieces published here do not necessarily reflect Aliran's official position.

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Cuckoobird
Cuckoobird
4 Feb 2025 8.28am

It is really depressing when one realises the minute politicians rise to power, they forget that their Masters are the common folks. They have forgotten how they seek the people support to put them in their current positions. Now that they are in power; they disregard the common folks putting pen to paper on works that is exorbitant in costs that has no possibility of cost recovery putting the state and country’s finance in disarray! We the common folks “Must” put them in their place in GE16.

Orang Ulu
Orang Ulu
3 Feb 2025 10.39am

Mr Netto,

Your solution makes sense. But no Angpaw for Madani politicians.

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