This article first appeared in The Edge Malaysia Weekly on November 20, 2023 - November 26, 2023

MRT Corporation Bhd CEO Datuk Mohd Zarif Hashim’s contract has been extended for another two years. This provides certainty to the implementation of the Klang Valley Mass Rapid Transit Line 3 (MRT3) as Mohd Zarif initiated the tender process in May 2022.

An MRT Corp representative confirmed the news with The Edge. The extension took effect on Nov 1.

Mohd Zarif’s employment had been on a three-month contract basis since July 2022. The short, three-month extension period baffled many, especially since the MRT3 project had just kicked off. It was said then that there was fierce lobbying for the CEO position. The MRT3’s entire contract value could be close to RM40 billion, with the construction cost expected to amount to RM31 billion.

The fact that Mohd Zarif will continue at the helm of MRT Corp gives certainty not only to MRT3, but perhaps also to the Penang LRT project. When tabling Budget 2024 in October, Prime Minister Datuk Seri Anwar Ibrahim had estimated a budget of RM10 billion for a Penang LRT line with connectivity to Seberang Perai.

MRT Corp is the project owner and developer of the Penang LRT.

In August, two requests for proposal — for design consultancy services and connectivity, and mobility study consultancy services — were issued by MRT Corp for the Pearl Line of the Penang LRT. It is not clear what the Pearl Line entails.

However, the studies for the alignment of the Bayan Lepas Line — linking the Penang International Airport in Bayan Lepas to Komtar in George Town — have been approved by all the relevant state and federal authorities.

But studies and reports on the connectivity of the Bayan Lepas Line to Seberang Perai have not been done. Nevertheless, the original cost of RM10 billion is only for the Bayan Lepas Line, without connectivity to Seberang Perai.

The extension to Tanjung Bungah has also been bandied about and MRT Corp is said to be undertaking feasibility studies for the extension proposals.

Meanwhile, for the MRT3 project, it is not clear whether a new tender round will be called for the civil construction packages CMC301, CMC302 and CMC303.

The due date for submissions for the civil construction packages had first been extended to Sept 30, 2022, from Aug 2, 2022, for CMC302 and CMC303 and Aug 30, 2022, for CMC301.

Following the change of government in November 2022, there has been no news on the outcome of the tender. With the PM aiming to reduce the cost of the project in his maiden revised Budget 2023, the fate of the tenders was unclear.

During the retabling of Budget 2023, Anwar said the government was confident of reducing the MRT3 cost to under RM45 billion from the RM50 billion announced by the previous administration. Nevertheless, there was no commitment of funding for the MRT3 in the Budget 2024 speech. At the moment, construction players are far from happy with the slow progress of the major infrastructure jobs announced by the current government through the two budget cycles it has presided over.

Certainly, they will be waiting to see if the government will proceed with MRT3 soon, now that there is certainty over who will spearhead the project at MRT Corp. 

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