CASE STUDY (15%)

“PROJECT MONORAIL IN PUTRAJAYA”

___________________________________________________________________

BACHELOR OF ADMINISTRATIVE SCIENCE (HONS)

FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES

ADS512: PROJECT MANAGEMENT

KAM2285D

PREPARED BY:

NO. NAME STUDENT ID GROUP

1. ANIS NAJWA BINTI ABD GHANI 2022912689 4
2. PUTERI MAZIDAH BINTI MEGAT MOHD NADZIR 2022920065 4
3. NUR FATNIN RAWAHAH BINTI ABDULLAH 2022782677 4
4. AIMAN SAFWAN NASRULISYAN 2022970707 4

SUBMITTED TO:

MADAM AZNI SYAFENA ANDIN SALAMAT

SUBMISSION DATE:

21st MAY 2023

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 TABLE OF CONTENTS

BIL CONTENTS PAGE

1. Introduction 3

2. Problems 7

2.1 No Cooperation with the Private Sector

2.2 Poor Financial Planning and Cost

2.3 A Complete and Total Waste of Money

3. Solutions 13

3.1 Request for Proposal (RFP)

3.2 Financial Evaluation of the Project

3.3 Continuous Review on the Project

4. Recommendations 19

4.1 Address Technical Challenges – Tram System

4.2 Secure Funding

4.3 Increase Political Will and Support

5. Conclusions 23

6. References 25

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1.0 INTRODUCTION

The monorail system in Putrajaya, Malaysia, is still under construction. Although there

has been little progress on the project since 2004, it was announced in 2020 that it will be

finished by 2025. Light rail was initially intended for Putrajaya, but as tunnel work for the

aforementioned system got underway, plans were altered and a monorail design was chosen

in its place. Two sublines were proposed: Line 1, a 12-kilometer (7.5-mile) monorail route with

17 stops, and Line 2, a 6-kilometer (3.7-mile) monorail route with 6 stations. To restart the

abandoned monorail project, the government suggested a new Light Rapid Transit (LRT)

system in 2019. The Monorail Suspension Bridge, which is still under construction, and the

Putra Bridge will be part of the monorail. At the Putrajaya/Cyberjaya ERL station, the monorail

line would enable connections to the already-existing KLIA Transit, which connects to Kuala

Lumpur and Kuala Lumpur International Airport, and the still-under-construction MRT

Putrajaya line. The initial cost of the project was RM 400 million.

The Auditor General's 2021 Series 2, which was just issued, claims that the Putrajaya

Monorail project's postponement has had an impact on the federal territory's integrated

transport system and that it would be a waste if the infrastructure developed is not used.

According to the research, the monorail's development delay also had an effect on bus

services and the usage of connected facilities. The monorail is the foundation of Putrajaya's

public transportation system. The research said that in order to alleviate traffic congestion in

the downtown and residential neighbourhoods, the government had to supply TLK (parking

spots). According to the article, work has not yet been finished on the two-route monorail

project, which includes Line 1 (13.2 km) and Line 2 (6 km), as well as the monorail station at

Putrajaya Sentral Terminal, Precinct 7.

The audit was unable to substantiate the reasons for the project's suspension in 2004

since no supporting papers were received, according to the report, which was made public.

"The audit's physical visit on August 16, 2022, confirmed that a part of the infrastructure, such

as the pillar structure for the tracks, and the bridge for the monorail, had been constructed,"

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the report stated. Only three forms of transport were completely exploited out of the four major

infrastructure projects that were finished, it claimed. Express Rail Link (ERL), bus, water

transportation, pedestrian walkways, and cycling lanes are four projects that have been

finished, whereas ERL, bus, pedestrian walkways, and bicycle lanes are the three modes that

are now completely used. In order to guarantee that the proper infrastructural facilities can be

constructed and used, the study advised the Federal Territories Ministry (KWP) and the

Putrajaya Corporation (PPj) to examine the development plan in light of the conceptual

changes of Putrajaya's growth. Additionally, it is advised that the KWP, the Ministry of

Transportation, and the PPj determine how the infrastructure should be used to serve the

populace and prevent waste.

According to a statement from the transport minister, Datuk Seri Wee Ka Siong, the

ministry of transport (MOT) has been informed on the plans for a maglev (magnetic levitation)

train system for Putrajaya. The development of a maglev monorail for Putrajaya as well as its

integration with existing rail and transportation systems would be the subject of additional

negotiations between the transport ministry and the ministry of federal territories, according to

the transport minister. The briefing was part of a visit to the transport ministry by several heads

of industry from Korean companies, including Park Geunhwa, the representative of Hyundai

Corporation in Malaysia, Min Jun Sung, the senior managing director of EP Korea, Yoo Jai

Tark, and Chung Dong Wan, the chairman of Maglev MKC. Rani Hisham, the CEO of KTM

Berhad, and Shahriman Shafein, the MOT DG for rail, were also present. The use of Hyundai

Rotem's Class 83 and Class 91 trains by Malaysian rail operator KTM Berhad is "a testimony

to their durability and reliability" with the assistance and support of the Korean company, the

transport minister said. The rail operator's ETS (Electric Train Service) utilises Class 91 trains.

More material and knowledge partners are presently being added to the National Rail Centre

of Excellence by the transport ministry. In order to improve the ministry's training in technical

knowledge related to railway and highway speed, the ministry said it is working out the

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specifics for the work and partnership with the Korea Railroad Research Institute (KRRI)

through this process.

In order to keep all administrative departments and agencies of the Federal

Government away from Kuala Lumpur City Centre, Putrajaya has been developed as the

country's administrative hub. The transfer procedure began in 1999 and is anticipated to be

finished in 2011 or 2012. Sadly, it appears that no preparation has taken place for the private

sector in this process. Without the presence of the private sector operating in Putrajaya, the

dominance of ministries, departments, and agencies in urban economics is still unable to have

a multiplier impact on the city's economy. Putrajaya's economic activities are mostly focused

on giving residents access to amenities including stores and dining options. However, if a well-

planned marketing is put in place, tourism has the greatest potential for growth among non-

government economic activity. The research done on the projected development, which

includes the building of Putrajaya Monorail Transit System Line 1 (PMT1), is presented in this

document. This development project is designed to give Putrajaya inhabitants access to

inexpensive, practical public transit, especially for trips between their homes and places of

employment. The purpose of the research is to assess the financial viability of developing

PMT1 in Putrajaya as well as the commercial value of operating monorail services and the

investment return to the developer.

Tram infrastructure development was intended to begin within three years, according

to Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor. The development of

the tram system, which is now under the control of the Economic Council, was recommended

for construction by the minister because it would be more affordable than the abandoned

monorail projects. After receiving approval from the EC, SPAD had anticipated to launch a

procurement process for the Putrajaya–Bangi tram line in 2018. During their annual review of

public transit for 2017, SPAD made this announcement. The tram system was chosen

because it was significantly less expensive to build and operate than traditional rail systems.

In addition to covering the distance between Cyberjaya and Kajang, the tram system is

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anticipated to be connected with the current and upcoming rail lines between Putrajaya and

Bangi. The MRT Kajang Line only goes as far as Kajang, however the MRT Putrajaya Line

will stop at the operational KT3 PY41 Putrajay Sentral station. One of the anticipated stations

along the intended tram line will be the upcoming HSR station at Kampung Abu Bakar

Baginda. Due to the large roadways between Putrajaya and Bangi, which enable the tram

system to share the traffic, this section will be built first.

Figure 1.1: The Incomplete Railway Construction in Putrajaya

Figure 1.2: Unfinished Putrajaya Monorail Project

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2.0 PROBLEMS

2.1 No Cooperation with the Private Sector

Figure 2.1.1: Online Newspaper Cut

Public-private partnerships involve collaboration between a government agency and a

private-sector company that can be used to finance, build, and operate projects, such as public

transportation networks, parks, and convention centers. Financing a project through a public-

private partnership can allow a project to be completed sooner or make it a possibility in the

first place.

Government agency might be heavily indebted and unable to undertake a capital-

intensive building project, but a private enterprise might be interested in funding its

construction in exchange for receiving the operating profits once the project is complete.

Private projects can touch up all the flaws that government agencies have. Government

agencies for some part need to cooperate with the public sector that at the end of the day will

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give benefits for the government itself. If the government agency itself notices that they cannot

stand on their own, then the government cannot be selfish to refuse to get help from the private

sector.

This is due to the fact that , as the former Prime Minister said, there is a private agency

that wants to cooperate and there are companies ready to take over the project. However, the

minister at that time refused to cooperate, thus the companies were ignored by the

government. This shows that , if the private sector was allowed to do it , it could have been

done through a process of tender and the project could have been completed as the fact that

this project was started in 2004. The Putrajaya Monorail could be done if the project is handed

over to the private sector.

Private sector can contribute to public revenues, which are critical to increasing

countries’ self-reliance and sustainable growth. If financial problems are one of the reasons

why this project failed, partnership with the private sector maybe can help by giving their

financial support. This joint statement fully recognizes the diverse forms of engagement that

the private sector brings to support development, together with governments, donors and civil

society. These include core business activities, public private partnerships, social

responsibility activities, and cross-sector or multi-stakeholder partnerships for development.

This joint statement recognizes the important role played by governments and other

public development actors in enabling and leveraging these private sector activities. It stresses

the common objective across all partners to build on the various forms of private sector

engagement. From this cooperation with the private sector can cooperate in investment,

capacity building, inclusive business models, knowledge sharing and innovation and

contributions to policy dialogue. This shows that Putrajaya Monorail can reach success as the

project also gets support from the private sector as the private sectors can provide support

from many aspects.

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 2.2 Poor Financial Planning and Cost

There might not have been enough thought put into the budgeting and financial

planning for this project, which led to its failure. The cost of a project is essential for

determining, budgeting, and maintaining cost control in order to ensure that the project can be

finished without exceeding the amount of money that was set aside for it. The process of

developing an approximation of the financial resources needed to complete project activities

is referred to as Estimate Costs. The process of aggregating the estimated costs of individual

activities or work packages in order to establish an authorised cost baseline is referred to as

Determine Budget.

The process of controlling costs includes keeping an eye on how far along the project

currently is. It is essential to have an accurate cost estimate for the project in order to be able

to determine very important things, such as the amount that will be spent or the amount of

money that will be needed. It is the best way to be able to understand and manage the

investment that the project requires, and it is also the most straightforward way to do so. When

looking at cash flow, one should look at the schedule for how much money will be made and

how much money will be spent on the programme. It is stated to be the analysis of the funding

needs, taking into consideration, for instance, that in the construction industry, funds are

typically released when milestones are met.

According to the most recent report from the Auditor General, the government of

Malaysia has lost an estimated RM812.91 million from the development of its administration

capital Putrajaya. A large portion of this loss, RM799.34 million, was caused by a monorail

project that was put on hold in 2004. Of the monies spent on the monorail project, some

RM797.18 million was used for the development of the project, while another RM2.16 million

was for the maintenance of a transportation. The amount of money that the government of

Malaysia has been unable to recover is truly staggering.

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 However, it’s possible that the government itself was unaware of their negative cash

flow and the poor financial planning they were doing. In the case of the monorail project, there

is a possibility that this project will face difficulties in financial planning as well as a low financial

plan. Losses could result from the management team neglecting to give adequate attention to

the project’s financial planning. During the process of financial planning, it is possible to

guarantee that financial control and cost control will be carried out in the most efficient manner

possible. This will guarantee that all of the items will remain within the allotted spending limit

as well as the financial cash forecast.

Inputs include contract requirements, a project financial plan, cost and revenue

benefits, and change requests. The impact of change requests, either in cost or revenue

streams, must be analysed and incorporated into the financial plan, and their effect in

borrowing and other features must be considered. The conclusion that can be drawn from this

is that, in the absence of adequate funding, projects will struggle to obtain the appropriate

resources and will have a very difficult time locating the money that is required. Mainly due to

the fact that the choice that is made regarding the project’s finances will have a significant

impact on a great many different aspects.

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 2.3 A Complete and Total Waste of Money

Figure 2.3: Pictures Taken of Abandoned Putrajaya Monorail Project

One of the most significant challenges facing the building and construction industry is

waste management. During the design and construction process, there are many activities

that result in unnecessary waste, according to a significant number of researchers and

practitioners. Waste is generated throughout the various stages of construction, including the

planning, estimating, and construction stages, according to Wahab and Nawal. In addition,

waste can be produced during the design phase, during operational phases, during

procurement, and during the material handling process. The vast majority of these consume

time and effort without adding value for the customer, which results in material losses, delay

times, and the execution of work that is not necessary.

According to the Auditor General’s Report for Year 2021 Series 2, which was published

today, the audit review discovered that there was waste for Putrajaya’s development

management amounting to RM812.91 million. This information was disclosed in the report.

Auditor General, Datuk Seri Nik Azman According to Nik Abdul Majid, the waste involved the

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delay of the monorail project as the backbone of the transport system in the Federal

Government Administration Centre amounting to RM797.18 million including the maintenance

of the public transport tunnel worth RM2.16 million.

Building a better bus infrastructure requires a total of RM200 million, which is the only

amount that will allow for the renovation of Putrajaya Central, the maintenance of existing bus

stops, the addition of bus lanes, and the installation of a traffic signal priority system for buses.

When taking into consideration that the monorail track infrastructure has not yet been installed,

the tunnels that are used by the monorail could even be used by the buses. With that amount

of money, the dreadful bus system in Putrajaya could most definitely be upgraded. Buses will

be able to travel at higher speeds as a result of the implementation of bus lanes and a traffic

signal priority system, which will also result in an increase in the frequency of buses and a

reduction in the amount of time needed for commutes. Because buses are so adaptable, this

initiative will have a more significant impact on the city and will reach more people.

The productivity of an organization, the amount of material that is lost, and the amount

of time it takes to finish a project are all directly impacted by waste, which ultimately results in

a significant revenue loss. The landfill receives a sizeable portion of its volume from the waste

that is physically present. The amount of waste generated by the construction industry is

comparable to that generated by households four times over, and more than fifty percent of

this waste is deposited in landfills.

As a result, in order to reduce the amount of waste that is produced, the government

of Malaysia needs to investigate the primary reason for the generation of waste in order to

resolve the issues that have been occurring with the Putrajaya Monorail. There are a variety

of factors that contribute to waste in the construction industry, and the money that is spent on

waste removal could be put towards something that is of higher priority. Such as, fix any

problems that related to the public problems. Government will need to allocate budget for a

specific and needed problems that require to solve.

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3.0 SOLUTIONS

The project’s revival was first mooted in 2016 when MMC Corporation Berhad (MMC)

submitted a proposal to the Economic Council (EC), following the government’s investment

into the Klang Valley MRT project. Therefore, the government has taken several measures to

continue the Putrajaya Monorail Project started in the year of 2016.

3.1 Request for Proposal (RFP)

One of the primary reasons for the project's halt was a lack of funding. Therefore, it

may be possible to secure the necessary funding by exploring new financing options, such as

public-private partnerships or through government grants in order to complete the project. For

example, in 2019, Putrajaya Corporation chose to sell 80% of its Nadi Putra shares to GETS

Global, allowing Putrajaya to relaunch the monorail project. Despite the fact that the

suspension bridge and tunnels for the monorail project are already completed, the cost of

continuing and finishing the projects is expected to be over RM2 billion. This is the reason as

to why the government chose to release a Request for Proposal (RFP) to any firms interested

in pursuing or resurrecting the project. Since there were numerous methods to execute the

project successfully, depending on the sort of technology used and employed, an RFP would

enable private businesses to provide cost quotations. As part of the RFP, a comprehensive

timeline and budget were included, as well as a detailed plan for construction, operation,

technical specification, stakeholder engagement, quality control, environmental impact and

maintenance of the project.

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 Figure 3.1.1: Federal Territories Minister Khalid Abdul Samad in Press Conference

In January 2020, Federal Territories Minister Khalid Abdul Samad mentioned the

RM400 million Putrajaya Monorail Project which was left abandoned for nearly 16-years-old,

was expected to be completed in 2025 following the discussions between the Ministry of

Transport (MoT) and the Federal Territories Ministry (KWP).

In April 2020 along with the meeting and RFP, Putrajaya Corporation (PPj) has

confirmed that the Malaysian government will proceed with the completion of the Putrajaya

monorail project. According to the KWP, the goal of the RFP is to request cost inquiries and

recommendations from the private sector. The KWP will then investigate the feasibility of

continuing the Project under a public-private partnership framework and decided on the sort

of equipment and technological resources to be employed for the project's development and

implementation. The KWP also confirmed that the RFP would be flexible, and that it is willing

to accept credible private-sector recommendations. The construction costs and asset

procurement for the Project will be substantially influenced by the system technologies

chosen.

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 The cabinet made a request to the Federal Territories Ministry (KWP) to have

a meeting with the MoT. The meeting was held two weeks before, and a contract was made

for the KWP to proceed with further action. This is to solicit private-sector proposals. The

remaining work will be done by examining the viability of continuing this project through

collaboration with the private sector, since several firms have expressed interest in partnering

on the project to the point of submitting proposals for the project. Following that, according to

Tan Sri Annuar Musa, the federal territories minister, the RFP will allow the government and

private sector to work together hand-in-hand to ensure the success and completion of the

project.

In a press conference held in October 2020, The ministry announced that it welcomes

any proposal following the launch of the RFP within three months. The project's design and

planning phases began, which included the production of reliable technical plans along with

price estimations. The government also looked at possible sources of funding for the project.

However, one year after the press conference in October 2021, no additional information

regarding the RFP and offers has been presented. Nevertheless, Datuk Henry Sum Agong,

the Deputy Minister of Transportation, pointed out that the project was expected to be

completed by 2025, yet did not mention a particular date.

To conclude here, according to Annuar, the federal government opted to issue the RFP

since a few companies expressed their interest in partnering on the project and even

presented their proposals to them. This was one of the reasons to which the government

decided to continue on this project. Annuar also stated that the monorail construction was

already halfway completed, and that the essential infrastructure, such as vaults and overhead

roadways, had been created with significant amounts. "Putrajaya, as the country's

administrative centre, requires an effective and advanced public transport system," he

remarked. He also stated that the routes and tracks had been finalised, with nine stations

guaranteed. Annuar, on the other hand, emphasised that this may change with regard to the

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proposal adopted since there are other planned stations connecting the administrative capital

with Cyberjaya, Bangi, Putrajaya, and Kajang are under the Transport Ministry's jurisdiction.

3.2 Financial Evaluation on the Project

One of the main goals in the project's planning is to establish an efficient transit

infrastructure adequate for a 21st-century city design. The development of a transport strategy

must be performed with the goal of pleasing as many people as possible while minimising air

and noise pollution. In this regard, due of the numerous obstacles involved in evaluating such

investments, most concessionaires are equivocal about judging the worth of investment return

with reference to infrastructure projects (Alias et al., 2014). Thus, a financial evaluation on the

abandoned Putrajaya Monorail Project would include a review of the project’s costs and

benefits, as well as the prospective return on investment by the government and others parties

involved.

The costs associated with the project would include the design and engineering,

construction, land acquisition, equipment, and ongoing maintenance and operations. These

costs must be carefully assessed to determine the total investment required for the total

completion project. This is to avoid and minimise wastage in the future. Meanwhile, the

benefits of the project included the increased mobility and accessibility, reduced traffic

congestion, and economic development in the surrounding areas. These benefits have to be

quantified and compared to the costs to determine if the project is financially viable. In addition

to that, the sources of funding for the project had to be evaluated to determine if they are

sufficient to cover the costs, unless, alternative funding sources must be explored aftermath.

Last but not least, the potential return on investment must be analysed to determine if the

project will generate a positive financial return. This may involve forecasting future revenue

and estimating the project's economic impact on the state.

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 3.3 Continuous Review of the Project

Continuous review is also essential to the success of the Putrajaya Monorail Project.

One of the most important aspect in reviewing the project is the project progress itself. Regular

reviews should be done to examine the project's present condition. This should contain an

assessment of the completed goals, deadlines, budget, and risk management method.

Furthermore, technical specifications are crucial components that the government must

consider in order to resurrect this project. The project's technical requirements should be

evaluated on a regular basis in order to assure that they are relevant as well as effective. Any

necessary adjustments or updates should be made as soon as possible. Any changes or

updates required should be made in a timely manner. Besides, stakeholders' needs and

concerns should be addressed and incorporated into the project through regular engagement

of government officials, community members, and businesses.

For instance, the Land Public Transport Commission (SPAD) has agreed to begin a

study of feasibility for a railway and tram service in Putrajaya and Cyberjaya as the

government received a bid to resurrect the abandoned 2004 project in 2016 (Aziz, 2020).

MMC Corporation Berhad (MMC) has proposed an initiative to the Economic Council (EC) to

resume the Putrajaya Monorail project, which was halted in 2004 owing to budget restrictions.

If authorised, the project is projected to be finished by 2021, coinciding with the completion of

MRT 2 (Sg Buloh-Putrajaya) the same year. It is uncertain if MMC is working alone on the

Putrajaya monorail project or in collaboration with other construction parties because the MMC

is currently in a JV with Gamuda Berhad in the construction of the MRT. Syed Hamid Albar,

Chairman of the SPAD, is also claimed to have acknowledged to the newspaper that MMC

had made a request to the EC to resurrect the project and that SPAD will now perform a

feasibility assessment for monorail and tram services in both Putrajaya and Cyberjaya.

Another effort done by the government on the project was in April 2019. Putrajaya

Corporation (PPj) has stated that the government plans to resume construction on the project,

17
that had been earlier postponed in mid-2004. Former PPj president Aminuddin Hassim stated

that construction was going to begin as soon as possible, and that a study would be carried

out beforehand. In accordance with PPj, there are now around 90,000 people residing in

Putrajaya, and daily ridership is anticipated to be approximately 120,000. Unfortunately,

there's at that moment no indication of the RFP's information and further content, yet

considering that this is a private-partnership project (PPP), they had presumed terms typical

with other PPPs in Malaysia.

Along with the government's ongoing review, the KWP and PPj have examined the

construction plans to be in accordance with any modifications to Putrajaya's developmental

concept by the middle of 2019, so that appropriate facilities and amenities may be provided in

effective and efficient way. Among those to be examined were the route to be taken and the

method of funding, including whether it will be partially funded by the private sector or vice

versa. Despite that, the various ministries and agencies have collaborated to establish the

best path ahead for the utilisation of existing facilities that will assist people and minimise cost.

The efforts made by the Malaysian government towards the abandoned Putrajaya

Monorail Project can be seen as mixed. On one hand, the government showed its commitment

to improving transportation infrastructure in the country by proposing the monorail project and

investing some initial funds towards its development. However, on the other hand, the project

faced numerous hurdles that ultimately led to its abandonment, suggesting a lack of adequate

planning and foresight. Overall, while the government's efforts towards the project were

commendable, the outcome highlights the need for better planning and risk mitigation

strategies in future infrastructure projects. It is important for the government to learn from the

challenges faced by this project and apply those lessons to future initiatives, to ensure that

public investment is utilized in the most effective and efficient manner possible.

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4.0 RECOMMENDATIONS

4.1 Address Technical Challenges – Tram Systems

The government might make an effort to resolve any technological issues that would

have slowed the project advancements. This can entail completing further feasibility analyses.

Choosing the different routes or building techniques or consulting an expert on how to get over

any legal or regulatory obstacles. Make sure all permits and approvals for the project

construction are obtained. In assessing the feasibility of transportation options in urban areas,

one important factor is the cost-effectiveness of different systems. As such, comparing the

costs of implementing different transportation options is necessary to determine which system

would be most financially viable for a given context. According to Datuk Seri Tengku Adnan

Mansor (2016) the government viewed trams as being a suitable alternative to the abandoned

monorail project in Putrajaya to solve traffic congestion.

Figure 4.1.1: Tram-Automated Rapid Transit (ART) system

A tram utilizes a hybrid trackless train and electric bus system called an automated

rapid transit (ART) that is eco-friendly and cheaper compared to conventional rail public

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transportation systems. A tram system can be built using existing infrastructure, while monorail

construction requires much more extensive preparation, vertically designed tracks, and

requires. Additionally, according to research on monorail systems, the cost of building a

guideway for a monorail system is higher than that of constructing a guideway for a tram

system. Project management and maintenance for monorail systems are also more

expensive, particularly due to the specialized engineering knowledge required and the cost of

replacement parts. A good and effective project management requires more planning and

resources for monorail projects, which adds considerably to their overall cost.

It is vital to recognize Putrajaya monorail project cost tools and techniques by utilizing

critical path method, program evaluation and review technique, and net present value in order

to ensure that the monorail project is completed timely and within budget. Hence, while both

tram systems and monorail projects have their advantages and disadvantages in terms of

transportation efficiency, it is generally more cost-effective for urban areas to opt for a tram

system due to their lower construction, maintenance, and project management costs

compared to monorail projects. It is important to note, however, that the decision of which

transportation system to implement ultimately depends on a variety of factors including local

context and needs.

Additionally, the environmental impact of each transportation option should also be

considered in the decision-making process, as reducing carbon emissions and promoting

sustainable practices are becoming increasingly important priorities for cities around the world.

The tram also has been identified as one of the greenest urban transport modes due to its low

environmental impact when in operation. With technological improvements and changes, most

trams do not produce any pollution at the point of use. The delayed project construction may

be caused by a number of factors including political and administrative issues, external

economic conditions, and unforeseen technical challenges. It is important to conduct thorough

feasibility studies and risk assessments before embarking on any transportation project to

ensure its sustainability in the long term.

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 A professional and effective project planning can contribute success in the project as

it allows for a clear understanding of the scope, timeline, budget, and potential risks. This

highlights the importance of conducting a comprehensive analysis before selecting a

transportation system for urban areas. Overall, the decision to implement a tram system or

monorail project in urban areas must be made with careful consideration of all factors involved.

Therefore, the delayed project monorail due to lack of funds, it is better to use tram systems

as trams are much cheaper to install than metro trains, subways, or other forms of heavy rail.

In addition to technical feasibility, capacity specifications, and construction costs, other

important factors include the environmental impact of each transportation option and their

potential contribution towards reducing carbon emissions.

Figure 4.1.2: The 53km tram system will connect major cities such as Cyberjaya, Putrajaya,

Bangi and Kajang

4.2 Secure Funding

According to Shen (1997), both the owner and contractor will suffer as a result of

delays in the completion of construction projects resulting extra cost and loss in financial

21
return. Thus, delay is costly for both owner and contractor. The Malaysia government financing

options explore various financing options to secure funding for the project such as public-

private partnerships international loans. By securing adequate funding, any problems during

construction could be avoided, hence, lead to the success. It is vital to have cost control on

the project to minimize the construction delays and blockers. The most significant cause of

project delays is poor cash flow management, followed by late payments, lack of resources,

and market instability. In Malaysia, the construction industry contributes significantly to

economic growth.

According to Bromilow (1974), only one-eighth of Australian building contracts were

completed within their timeframe. Construction projects are delayed by financial pressure

when estimating is not taken into account. It is extremely important that construction

companies avoid errors as they can significantly impact their bottom line and limit their capital.

The project will move forward if everything stays on track. By securing adequate funding, any

problems during construction could be avoided, hence, lead to the success. The Malaysia

government financing options explore various financing options to secure funding for the

project such as public-private partnerships. It is vital to conduct a detailed cost-benefit

analysis, risk assessment and feasibility study to ensure the successful implementation of any

transportation project. Therefore, it is imperative that cities thoroughly evaluate the benefits

and drawbacks of different transportation options before making a decision. Financials must

be carefully managed to ensure that the chosen transportation system can be sustained in the

long term.

4.3 Increase Political Will and Support

To address the issue of the abandoned Putrajaya monorail project, it is imperative that

there be a collaborative effort between the government and private sector. Some of Public-

Private Partnerships have proven successful in the past, with Malaysia utilizing them through

companies such as Putrajaya Holdings Sdn Bhd and Kuala Lumpur City Center Bhd as the

project managers. Partnering with the private sector can ensure more efficient and successful

22
completion of such infrastructure projects, mitigating risks and sharing resources while also

reducing costs. Furthermore, adopting this approach would enable the government to prioritize

its core responsibilities of policy-making and regulation while delegating construction,

operation, and maintenance tasks to expert private sector entities. This approach provides a

practical solution that can address the problem of abandoned infrastructure projects in

Malaysia, such as the Putrajaya monorail project.

It is essential to increase the political will and support for Public-Private Partnership

(PPP), as this would enable Malaysia to move ahead in the direction of achieving its

development goals effectively and efficiently. Therefore, it is essential for the government to

increase the political will and support by cooperating with the private sector and required

political backing in order to be successful. This might involve stakeholders, forming support

networks, and raising public knowledge of the advantages of the initiative. Furthermore,

involving the local community in decision-making processes and regularly communicating with

them throughout the project can improve transparency and increase public support for urban

transportation initiatives.

Planning a project appropriately and fulfil its requirement based on objective, scope

and timeframe. Guidelines supporting the plan's vision are essential to an effective

transportation plan. If decision-makers do not have this guidance, they will have to guess at

what actions are needed, inevitably leading to arbitrary decisions. Hence, action must be taken

so that other future Malaysia's development projects effective and efficiently be executed in

construction.

5.0CONCLUSION

The Putrajaya Monorail project, which was put on hold in 2004 owing to financial

restrictions, could be restarted. The Economic Council (EC) has received a request from MMC

Corporation Berhad (MMC) to resuscitate the project, according to today's The Sun. The

project, if allowed, is anticipated to be finished by 2021, which would coincide with the

23
completion of MRT 2 (Sg Buloh-Putrajaya), according to the article. The Economic Planning

Unit and other authorities will be in charge of the project. The insider was described by the

local daily as stating, "To begin with, the monorail station at Putrajaya Sentral will integrate

with the first station of MRT 2, with seamless connection via an 84m skybridge." It's unknown

if MMC is working on the Putrajaya monorail project alone or in collaboration with other project

delivery partners. The MRT is presently being built by MMC in a joint venture with Gamuda

Berhad. The insider also disclosed to The Sun that private finance or the use of a public-

private partnership model might be used to support the project. Phase One of the project was

expected to cost RM400 million for two lines under the initial concept put up in 2004. It's

unknown if MMC is working on the Putrajaya monorail project alone or in collaboration with

other project delivery partners. The MRT is presently being built by MMC in a joint venture

with Gamuda Berhad. The insider also disclosed to The Sun that private finance or the use of

a public-private partnership model might be used to support the project. Phase One of the

project was expected to cost RM400 million for two lines under the initial concept put up in

2004. The rehabilitation, which will include improved roads to Cyberjaya, Bangi, and Kajang,

is being described as one of the "unfinished businesses" preventing Putrajaya's progress. The

original plan for Putrajaya will be maintained, and an improved route is anticipated to

encourage linkage to other rail services such the East Coast Rail Link, Mass Rapid Transit,

and the high-speed train between Kuala Lumpur and Singapore. Both ministries were

reportedly looking at methods to launch the project as soon as possible last year, and the

initial RFP calling was planned to begin in January 2018.

24
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