I refer to the article”Downtown line costs soar by more than 70%” (Straits Times, Oct 30).
100 times ComCare spending?
The estimated costs overrun of $8.7 billion is a lot of money. To put this sum in perspective, it is more than double our entire annual public healthcare spending, or more than 100 times what we spend on ComCare in a year to help the needy.
It states that “Half of this $8.7 billion increase was attributed to a sharp rise in construction cost, with the other half linked to a number of changes to the project”.
Let’s look more closely at some of the changes.
1 more MRT station?
The number of MRT stations will increase by one more, from 33 to 34. So, a three per cent increase in the number of stations has contributed to a 73 per cent increase in the costs.
2 more km of tracks?
The length of MRT tracks will increase by two km from 40 to 42 km. So, a five per cent increase in the length of MRT tracks has also contributed to a 73 per cent in the costs.
Get more firms to bid?
As to “(LTA), which also said it is taking steps – like inviting more firms to bid for projects – to rein in prices”, does this imply that they did not do enough in the past, to invite more firms to bid for projects – to rein in prices?
Detailed breakdown?
We need a more detailed breakdown and accounting as to “Half of this $8.7 billion increase was attributed to a sharp rise in construction cost, with the other half linked to a number of changes to the project”.
What are the detailed changes and costs differences?
A cursory statement like “For example, Downtown Line Stage 3’s Tampines and Expo stations will each have an additional entrance”, should be backed up by exactly how many more entrances have been added?
For example, what is the percentage capacity increase of the depot in Gali Batu near Woodlands?
What exactly are the more stringent safety and regulatory requirements, and their associated costs increase?
If it’s private sector?
If its in the private sector, a costs overrun of such magnitude in the humongous amount of $8.7 billion, would be the subject of intense scrutiny from stakeholders.
Perhaps we need to do the same in Parliament.
When did we know?
When did the LTA first became aware of this costs overrun, since the Line was announced in 2008 with the first stage due to open just around the corner next year? Was it before or after the last elections?
Something so important and significant only appeared because of the Straits Times’ Christopher Tan’s story now – “The latest price tag appeared in this year’s Budget statement” – which was about half a year ago?
Was this highlighted or mentioned during the Budget debate on the Ministry of Transport?
Habit of costs overruns?
We should try not to make it a habit of getting approval for projects based on grossly under-estimated budgets, which turn out to be huge costs overruns, like the Youth Olympic Games (YOG) of 2.7 times more, and now the Downtown Line.
Leong Sze Hian
