SHAH ALAM (Aug 24): Prasarana Malaysia Bhd, the asset owner and operator of the country’s two light rail transit (LRT) networks and the KL Monorail, is targeting an economic internal rate of return (EIRR) of 21% from the Light Rail Transit Line 3 (LRT 3) project, which is expected to boost economic activity in the Greater Kuala Lumpur region.

Its president and group chief executive Datuk Azmi Abdul Aziz said the company is putting more emphasis on potential economic returns which the project would bring.

“For public transportation infrastructure projects, we do not look at the financial returns, because if we did, then we would have to charge high fares. The cost of building and developing the infrastructure is very high," he told reporters, after the launch of LRT 3 today.

“So instead, we look at the economic benefits in terms of job opportunities and the rate of economic growth. Higher economic activity will drive economic growth and will translate into better gross domestic product growth. The focus is on the rakyat and how the nation will benefit,” he said.

On the award of the various work packages of LRT 3, Azmi said Prasarana has tendered out the first package for the provision of the trains for the new line, adding that necessary announcements on the other packages will be made, after it concludes the work packages.

He also said the RM9 billion estimated cost for the project is still subject to confirmation.

“We will have the (exact) cost, once we have completed our assessment on the target cost of the project, which we are still building on. The RM9 billion was based on previous estimates. It is subject to confirmation,” said Azmi.

Earlier at the launch of LRT 3, Prime Minister Datuk Seri Najib Razak said a 50% discount will be accorded to commuters using the Rapid KL bus services, LRT and monorail networks between 6 a.m. and 7 a.m., effective Sept 16.

“I am certain that this will contribute to easing the congestion at peak hours on the LRT and monorail lines, as commuters can take advantage of this early bird discount by coming out slightly earlier,” said Najib.

Azmi said Prasarana will be making the official announcement on the discounts at a separate session.

LRT 3 will be serving the western corridor of Kuala Lumpur, stretching 37km from Johan Setia to Bandar Utama. Construction works are expected to commence in early 2017, with a targeted completion date of Aug 31, 2020.