Transport minister Loke Siew Fook says the Penang LRT will be paid for from the federal development budget, not via a public-private partnership, as the government now has the means to pay for it upfront.
Speaking in Parliament today, Loke said the shift in funding was possible because other rail jobs under his ministry were nearing completion, freeing space in the books.
“We now have room in the development budget as other transport works under the ministry that use development expenditure (DE) are nearing completion,” he said in response to a question by Radzi Jidin (PN-Putrajaya).
Loke said the funds for the LRT project will now be allocated through the yearly DE budget.
“Funding through the DE budget is more direct and better for the government…