Politics

Minister says no cost overrun in Gemas-JB EDT rail project despite delay

Datuk Seri Mustapa Mohamed said the Gemas-Johor Baru EDT rail project will not experience any increase in overall cost even though it is expected to be completed one year later than the initial date. — Picture by Ham Abu Bakar
Datuk Seri Mustapa Mohamed said the Gemas-Johor Baru EDT rail project will not experience any increase in overall cost even though it is expected to be completed one year later than the initial date. — Picture by Ham Abu Bakar

KULAI, June 21 — The Gemas-Johor Baru electrified double-tracking (EDT) rail project will not experience any increase in overall cost even though it is expected to be completed one year later than the initial date.

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the project which is now expected to complete in October 2022, costs RM9.55 billion, including more than RM400 million for coaches and RM200 million for consultation fees.

“So far, what we have been informed, no increase (in cost). Furthermore, the delay is just a little, (progress) of 1.6 per cent, one to two per cent is normal, can be completed in two years.

“Based on the briefing by SIPP-YTL, the company that is managing this project, the project is already 60 per cent complete and the delay of 1.6 per cent, it means we can cover this, perhaps among the factors, due to Covid-19 in these two, three months (but) because this company has experience, we hope that their work will be completed by October 2022,” he said.

He said to reporters after visiting the works related to the project at the Keretapi Tanah Melayu Kulai station here, this afternoon.

Meanwhile, SIPP-YTL chief executive officer of rail division Datuk Seri Azmi Abdul Aziz said the project delay was following the land takeover process as well as work stoppage due to the enforcement of the movement control order which started on March 18 this year.

The Gemas-Johor Baru EDT rail project spans 192 kilometres and will have 11 stations including Segamat, Kluang, Labis, Bekok, Paloh, Renggam, Layang-Layang, Mengkibol, Kulai and Kempas Baru. — Bernama

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