GEORGE TOWN, May 10 — Economist Lim Mah Hui and former state transport engineer Lim Thean Heng have questioned the rationale for the proposed Penang Light Rail Transit (LRT) project, citing its exorbitant cost after the extension that would link it to Seberang Perai.

The duo said a poorly conceived and executed LRT system could lead to financial burdens on the state and the public that could last decades.

"The LRT will be a financial, technical and environmental albatross that could lead to losses of about RM600 million per year,” Mah Hui said in a joint press conference with Thean Heng on the proposed Penang LRT project at Aliran’s office here today.

Last year, Prime Minister Datuk Seri Anwar Ibrahim confirmed that the federal government will fund the development of the LRT in Penang.

The LRT alignment, which was originally from Bayan Lepas to Komtar, will now be from Bayan Lepas to Komtar to Tanjung Bungah and Air Itam.

There will also be a line to Butterworth, Kepala Batas and Simpang Ampat.

Mah Hui said the Penang LRT may face potential annual deficits due to high operating costs and lower than expected ridership.

He pointed out that Prasarana already faced huge deficits and had to be bailed out by the federal government, which proved that an LRT is a money-losing project.

"Why are we wasting money on this white elephant when we cannot afford to support this system,” he said.

He said the cost to construct the LRT from Bayan Lepas to Komtar is now reportedly RM10.5 billion.

"The government did not reveal the costs for the extension from Komtar to the mainland, it will surely be more than RM10 billion,” he said.

He said the government must explain to the tax payers why they choose to fund and build the expensive LRT when there are cheaper alternatives.

He said the government can implement cheaper alternatives like autonomous rapid transit (ART) and bus rapid transit (BRT) that are ten times cheaper than the LRT.

"The ART and BRT offer greater flexibility, can cover a wider area and they can change the route according to demands of the population,” he said.

He said the carrying capacity of the ART and BRT is more suitable for Penang’s population compared to the LRT.

"Data from existing LRT lines such as Ampang Jaya LRT, Kelana Jaya LRT and the KL monorail show that not one line has achieved its projected ridership after 25 years,” he said.

Meanwhile, Thean Heng pointed out that the LRT system in Taiwan went bankrupt due high operating costs.

"The high operating costs of the LRT here will be borne by the tax payers in future,” he said.

He said the state is overly focused on building highways and the expensive LRT instead of considering other public transportation components.

During a luncheon event previously, Penang Chief Minister Chow Kon Yeow said the LRT line from Bayan Lepas to Komtar, known as the Mutiara Line, will be a start for a more connected public transportation network.

He said there will be other LRT lines to other areas on the island and mainland connecting Komtar.

"We have to start somewhere so this first line is the starting point,” he said.

The Transport Ministry officially took over the Penang LRT project after the Cabinet approved the development of the project on March 22.

It was announced that SRS Consortium Sdn Bhd will be building the first segment of the project which is expected to start in September.