LRT budget rises to MOP16.4 billion

The budget for the Light Rapid Transit (LRT) project has been raised again, this time to a total of MOP16.4 billion, according to the Transportation Infrastructure Office (GIT).

Though this figure does not include the Macau line, which is yet to begin construction, it does include the Seac Pai Van extension and the Barra link.

The latest figure marks a 28 percent increase over the previous estimate of MOP12.8 billion. Moreover, public broadcaster TDM reported that GIT said it expects further budget hikes in future due to “inevitable” expenditure increases.

“It’s inevitable to encounter expenditure increases when launching or confirming the implementation of certain routes because our latest budget mainly focuses on the Taipa route,” the GIT coordinator, Ho Cheong Kei, told TDM.

According to TDM, the MOP16.4 billion is earmarked for eight major projects, including preparation studies, supervision, verification and train operating materials.

In a statement from the government, the GIT wrote that it aimed to limit the cost of the Taipa segment at MOP11 billion (excluding the Seac Pai Van extension and the Barra link), of which MOP9.8 billion has already been awarded to date.

It said that the Taipa Line will begin operating in 2019, while construction on the Barra link between Taipa and Macau will begin in the fourth quarter of this year.

Meanwhile, the government has still not decided on ticket fares, saying only that it is considering the introduction of a subsidy plan to keep fares low. It is already committed to paying Hong Kong train operator MTR Corporation MOP900 million per year under a five-year contract to help run the project.

MTR Corporation won a contract earlier this year worth around MOP6 billion to operate the Taipa Line. The company will be responsible for the day-to-day operations of train services within the first five years, and the repair and maintenance of trains, signaling systems and infrastructures.