Prasarana was fully aware that the initial cost of LRT3 (RM10 billion) was inadequate, and a substantial increase would be needed for the project to be completed.

The initial Government Guarantee excluded Goods and Sales Tax (GST) (now no longer required); Fee for the Project Delivery Partner (PDP); PDP Reimbursable Cost; Contingencies; Owner’s Cost including contributions to utilities companies, staff cost, etc.; Owner’s Consultancy Services e.g. Independent Checking Engineer reporting to SPAD; Preliminary and General Costs; Land Rental; Cost Claim; and Interest during Construction.

On 30 March 2018, Prasarana formally requested approval to issue an additional RM22 billion Government Guaranteed bonds with the expectation that the final total cost of LRT3 would increase to RM31.65 billion.

Prasarana currently awaits instructions from the Ministry of Finance (MoF) on the rigorous and comprehensive cost rationalization to be approved. The Minister of Finance YB Lim Guan Eng had announced that Cabinet had approved the reduced project cost to be RM16.6 billion, a 47% reduction or savings of RM15 billion from the cost of RM31.65 billion. Prasarana would abide by the instructions of MoF.

SPAD had also fully supported the decision of the MoF to rationalize the cost of the LRT3 project.

In view of the financial constraints faced by the Government, Prasarana supported the decision to remove stations with projected lower ridership from the alignment to further reduce cost. SPAD has also fully sanctioned the proposed reductions in stations, which would not be expected to see a high passenger load. Nevertheless, provisions have been made for new stations to be built, or existing stations to be upgraded when demand increases in the future.