GEORGE TOWN: The Penang state government has decided to build an elevated Light Rail Transit (LRT) system in the state, rather than a tram system in order to avoid the associated costs of relocation of utilities, land acquisition and social problems related to construction.

Penang Chief Minister Lim Guan Eng said the associated costs involving at-grade or street-running trams would result in rows of shophouses having to be relocated, which would in turn affect the social fabric of the community.

“While [the cost to build] an elevated LRT is more expensive than [an] on-road tram [system], it has less [environment and social] impact,” he told a press conference here yesterday.

The proposed RM4.8 billion LRT system will operate between Weld Quay and the Penang International Airport, a distance of 22km. The project is part of the RM46 billion Penang Transport Master Plan (PTMP).

SRS Consortium Sdn Bhd, the project delivery partner of PTMP, estimated that the cost of LRT construction per kilometre is RM220 million, its project manager Szeto Wai Loong said. The cost per kilometre for the tram system is RM80 million, as proposed by Penang Forum, comprising a group of non-governmental organisations.

He said the consortium’s proposal includes the construction of stations and the park-and-ride system, with minimal land acquisition. On the other hand, Penang Forum’s proposal involves at-grade or street-running trams and does not include land acquisition costs.

Rebutting Penang Forum’s claims that the RM1.6 billion tram system is cheaper, faster and better, Szeto said the social impact and traffic congestion would be worse due to its on-road infrastructure.

He said Penang Forum relied heavily on the Halcrow study, which clearly stated that acquisition costs were not included.