KUALA LUMPUR: The redevelopment of the Kuala Lumpur Sentral (KL Sentral), a pivotal transport hub connecting various modes of transportation, is expected to commence next year, said Transport Minister Anthony Loke.
He said negotiations between developer Malaysian Resources Corp Bhd (MRCB) and the Public-Private Partnership Unit are currently underway, focusing on finalising the terms of privatisation for the redevelopment project.
"As far as the ministry is concerned, we hope that the negotiation can be completed within this year. That means within the next two to three months.
"And hopefully, we can launch the project by the end of this year, or by early next year. So we hope that the redevelopment will begin next year," he said at a press conference on Rapid KL operations post-2025 Budget' here today.
Loke said the redevelopment is a public-private partnership (PPP) initiative, thus the entire cost will be covered by the developer.
"The government will not give a single cent in terms of the construction cost. But what they will get in return is the air rights of development.
"They will build buildings on top of the station as well as mixed development on top or next to the station.
"This part of their return to build the station for us. But the condition is that they must complete the station first before they can develop," he said.
Importantly, Loke noted that KL Sentral cannot be closed, even for one hour, during the redevelopment.
"The construction has to take into consideration the live operation in KL Sentral, so all these factors are being finalized right now," he added.
Last year, the Cabinet approved the proposal to redevelop KL Sentral to ease the congestions of commuters and vehicles.
The ministry had proposed that the RM1 billion redevelopment cost would be borne by MRCB as the primary developer.
Loke had said the redevelopment would not have any financial implications to the government.
He added that the redevelopment would not affect public transport services such as the LRT, KTM and ETS.