BUTTERWORTH: The Mutiara Line Light Rail Transit (LRT) project is expected to kick off early next year, Transport Minister Anthony Loke Siew Fook said.
Loke said discussions were being held with the main contractor as there were several matters which had to be finalised. He said, thereafter, they would obtain approval from the Finance Ministry.
"We hope that all the necessary processes will be finalised by the end of this year. So, in this final two months, we will move towards that.
"We expect work to kick off early next year," he told newsmen here today, without committing on any specific date.
"I have never said that work would be starting at the end of this year. Only the media reported that. That is not the official statement from the ministry.
"We also hope works can begin soon but there are processes which we need to adhere to," he added.
Elaborating, Loke said the contractor appointed was the same contractor which entered into an agreement with the Penang government for a separate development model before this.
He said with the federal government having taken over the LRT project, they had their own procedures. Loke said, firstly, the cabinet had agreed in principle to the appointment of the same contractor.
"However, in terms of detailed costing, construction costs, all that needs to be rediscussed and finalised. And that has taken some time in the last few months.
"So, we are in the final phase now. Once all details have been worked out, we will bring it to the Finance Ministry for approval before awarding the project to the contractor," he said.
Loke said the first phase of the LRT alignment stretched from the Penang International Airport (PIA) to Komtar. He said the cross-straits stretch would come under the subsequent phase.
"Nevertheless, we have to work on the overall design now, for Penang Sentral on the mainland. This is why there are changes to the scope, design and cost before this.
"Previously, it was only one straight alignment. Now it will go to Penang Sentral, as instructed by Prime Minister Datuk Seri Anwar Ibrahim," he said.
Initial work will comprise infrastructure and civil works.
Last month, Chief Minister Chow Kon Yeow had expressed hope that work on the Mutiara Line LRT project would begin as scheduled by the end of this year.
He said then that discussions were ongoing between MRT Corp, the project owner and implementation agency, and SRS Consortium Sdn Bhd, the contractor appointed for Segment 1 of the project, from Bayan Lepas to Komtar.
The cabinet had approved the LRT project during a meeting on March 22, this year, a decision welcomed by the state government.
The Penang Mutiara Line LRT, which is targeted to begin operations in 2030, starts from Penang Silicon Island to Komtar, then across to Penang Sentral in Seberang Prai.
The distance is estimated to be about 29km with 20 stations, including two interchange stations at Komtar Station and Penang Sentral Station.
Loke was met after the memorandum of agreement (MoA) signing ceremony between the Railway Assets Corporation (RAC) and the Penang Housing Board and the heads of agreement (HoA) signing ceremony between RAC and Rivanis Ventures Sdn Bhd for the redevelopment of the Kampung Manis land.