Pemandu, SPAD deny land acquisition only way to fund MRT

Property owners protest against the proposed land acquisition in Chinatown for the MRT project. File pic

KUALA LUMPUR, Aug 27 Putrajayas efficiency unit and the public transport regulator have denied that acquisition and development of land along the Klang Valley Mass Rapid Transit (MRT) route is the only way for the government to pay for the multi-billion ringgit project.

In a joint statement, the Performance Management and Delivery Unit (Pemandu) and the Land Public Transport Commission (SPAD) said a report by The Malaysian Insider yesterday quoting a letter from Pemandu chief Datuk Seri Idris Jala as saying land acquisition was the only way to recoup project costs was misleading and used out-of-context paragraphs.

The MRT project is primarily funded by the government. The implementation of a combined fare-box revenue cum rail-and-property model is meant to help the government defray part of the project cost. This model has been communicated to the public during various open days, public engagements with residents, and it has also been reported by the media extensively.

Therefore, it is misleading to suggest that land acquisition is undertaken to recoup the MRT costs, and worst, the only way to recoup the costs, Pemandu Greater Kuala Lumpur NKEA director Ahmad Suhaili Idrus and SPAD chief executive Mohd Nur Kamal said today.

Pemandu and SPAD said the government had already minimised the need for land acquisition along the Sungai Buloh-Kajang (SBK) line by more than half upon receiving public feedback, pointing out that about 70 per cent of the current alignment runs on road reserves and government land while the rest will have to be acquired.

They explained that the SBK alignment had been arrived at after a three-step process which i! nvolved establishing fixed points along the MRT corridor, connecting them and taking into account six factors minimising social impact, optimising journey time, constructability, optimising ridership, minimising land acquisition, and ensuring integration with existing rail systems.

Land acquired will be used solely for the technical needs for the MRT project aboveground and underground tracks, stations and support facilities such as park-and-ride facilities, Pemandu and SPAD also stressed.

Any development under the rail-and-property scheme will be mainly on government-owned land that is unused, under-utilised, or not being utilised optimally where it can be developed as transit-oriented developments, they said.

Indeed, there may be instances where private land may be purchased to enhance the development potential but this will be done on a willing buyer, willing seller basis.

The statement added that SPAD was currently in the process of managing discussions and communicating issues surrounding the private land on Jalan Sultan that will be acquired for an underground station and tunnel.

Putrajayas powerful efficiency unit admitted in a letter to the Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM) president Tan Sri William Cheng that Putrajaya needs to acquire and develop land along the MRT route as it cannot afford the multi-billion ringgit project otherwise.

In a letter obtained by The Malaysian Insider, Jala told Cheng that the government was pursuing a rail-and-property model as it would not be able to recover the cost of the first line between Sungai Buloh and Kajang through fares alone.

For the government to manage the project efficiently and sustainably, fare box revenue will not be sufficient to finance the high capex and opex for the MRT network, Jala said in the letter dated August 23.

Separately, Cheng had also written to Transport Minister Datuk Seri Kong Cho Ha accusing SPAD and outgoing MRT project owner Syarikat Prasar! ana Nega ra Bhd (SPNB) of abusing the Land Acquisition Act 1960 to acquire land bank for property development by favoured parties.

Pemandu has published Jalas full letter to Cheng, which has been reproduced here.