KUALA LUMPUR: Works on the proposed high-speed rail (HSR) linking Kuala Lumpur and Singapore may commence in early 2018 and likely at a cost of RM65 billion, said people familiar with the matter.
It is understood that the current estimated HSR cost per kilometre for systems and track is US$10 million (RM42.6 million).
“This means, for a total length of 350km, the systems and track workS would cost RM15 billion. Civil infrastructure cost is about three times more than the systems and track works so we are looking at RM45 billion.
“We also estimate that there should be at least 60 four-car train sets, with 30 sets each to serve the express and transit services. The cost to purchase the 60 sets would be about RM5 billion.
“These are the current estimates for the HSR project based on today’s market price for raw materials and the value of the ringgit versus the US dollar,” sources said.
Business Times was the first to report more than five years ago that it could cost the Malaysian government around RM40 billion to build the HSR link, including RM10 billion to buy high-speed trains.
The HSR is expected to cut travel time between Kuala Lumpur and Singapore to 90 minutes, from about five hours now.
The Malaysian terminus will be located in Bandar Malaysia, about 3km from Kuala Lumpur’s financial district, while Singapore’s will be located at the current site of the Jurong Country Club in Jurong East.
According to the source, private parties are proposing to build the HSR link in return for a 50-year concession.
“That is how long it would take for them to recover their investment in the HSR project should it cost RM65 billion. Both Malaysia and Singapore are still in discussions over how to implement the project.
“It could be on a government-to- government business model where the Japanese or Chinese can come up with the money and fund the development. Nothing is firm yet,” the source said.
Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim said recently that only four per cent of the rail would be in Singapore.
He also said that the HSR is expected to contribute RM100 billion to the country’s gross domestic product.
Meanwhile, Malaysia High-Speed Rail Corp Sdn Bhd chief executive officer Mohd Nur Ismail Mohamed Kamal told Business Times that the bilateral agreement was expected to be signed by early next year.
“Once the agreement is signed, it would take about one year or so for tenders to come out. We are fine- tuning details of the proposed alignment and design. We are open to bids from various parties,” he said.