Learn from costly mistakes of Sunway BRT, says Penang Institute 
Mar 2 2016, 12:23 PM
QUOTE(joe_mamak @ Mar 2 2016, 10:50 AM)
Link has infographics
http://www.themalaysianoutsider.com/cityne...nstitute-report
Learn from costly mistakes of Sunway BRT, says Penang Institute
BY NOEL ACHARIAM
Published: 28 February 2016 7:01 AM
Penang Institute is questioning the manner in which the contract for the construction of the Sunway Bus Rapid Transit (BRT) project was awarded, and the way the system was designed, in a report entitled "The Sunway Bus Rapid Transit (BRT) Line: Lessons for The Future".
The report states that the choice of contractor had raised many questions in terms of conflict of interest and private sector "capture" of a public infrastructure project.
“The Sunway BRT line was officially launched by Prime Minister Najib Tun Razak on June 2, 2015. Costing a total of RM634 million – which averages out at RM117 million per km – the 5.4km elevated BRT line appears to be on the high end of the cost spectrum for BRT systems.
“The manner in which the design and contract of this BRT system was decided upon – via a direct negotiation public private partnership (PPP) contract – raises many questions in terms of conflict of interest and private sector ‘capture’ of a public infrastructure project," said the report.
The contract to build the elevated BRT line was awarded to Sunway Construction, a subsidiary of Sunway Bhd, which is the biggest beneficiary of the Sunway BRT line, which has many properties (already built and in the process of being built), businesses and educational institutions that is served by the Sunway BRT line”.
“The inclusion of Sunway Bhd as one of the stakeholders in this PPP project via its Corporate Social Responsibility contribution (15%), the partial funding of this PPP project via the Facilitation Fund (15%), which comes under the Public Private Partnership agency in the Prime Minister’s Department (otherwise known as UKAS), all point towards possible explanations for the decision to build the elevated BRT line at what seems to be a high cost.
“The private sector ‘capture’ of this PPP project is reflected in the naming of the BRT stations, whereby four out of the seven stations have ‘Sunway’, or an abbreviation of Sunway, in their names, and one station called 'South Quay' takes the name of one Sunway’s property developments.”
The report said the Sunway BRT had also set a poor precedent with its exorbitant fare structure averaging RM1 per km.
“According to the structure guidelines issued by the Land Public Transport Commission (SPAD), to travel the equivalent of 24km on a BRT line in Malaysia, one would have to pay RM10.
"For the proposed KL-Klang BRT line, a one-way journey of 34km would cost RM12.10. Do the math and the monthly expenditure on BRT fares will come up to RM484. This represents almost 54% of Malaysia’s legislated minimum wage figure of RM900, and will be a very significant expenditure indeed.”
The institute said the ludicrously high fee structure also calls into question the decision to build an elevated BRT and the process by which the contract was awarded.
“Were there any studies done by either UKAS, SPAD or Prasarana on the possible fare structure of the Sunway BRT Line? Did Prasarana have to finance the RM444 million of its share in the construction costs of the Sunway BRT, given that it was already in debt to the tune of RM13.91 billion at year end 2014?
“A one-way ticket from Sunway-Setia Jaya to USJ7 will cost RM5.40. By comparison, even after its fare revision in December 2015, it would only cost RM4 to travel from the Kelana Jaya LRT station to the KLCC LRT station. Taking the BRT costs significantly more than the toll rates on highways leading to KL, and will form a significant financial burden on those who rely heavily on public transport, such as the lower income group.”
The institute said students will also be among those affected, as they do not have an income.
“These exorbitant fares definitely have an impact on ridership, and have already contributed to low ridership figures compared with during the period of free rides, where it was normal for stations and buses to be packed.
"This does not bode well for the route’s original aim of reducing congestion in the Bandar Sunway area, as given the comparatively cheaper toll rates, people may choose to drive to and from Bandar Sunway instead.”
The institute said the decision to build the costly elevated BRT line, funded primarily by an already heavily indebted Prasarana (70%), could explain the decision to structure the fares of the BRT line at the exorbitant rate of RM1 per km.
“After a trial period of two months, in which the rides on the BRT Line were offered for free, the exorbitant fare structure caused a 63% drop in the average daily ridership when it was implemented in August 2015.
"The ridership recorded in August 2015 – 4,616 per day or 256 per hour – is approximately 11% of the initial projected ridership of 2,400 per hour."
The institute said Prasarana’s rationale for the fare structure, that it was impossible to cover the Sunway BRT operational cost at the current ridership rate, begs the question of how that would work out, given that ridership has drastically fallen since the introduction of the fares.
“Again, detailed breakdowns of the operational cost are unavailable, although we can speculate that the additional cost comes from the maintenance of the elevated bus lanes, lifts and escalators in all the elevated stations. One might also argue that the signalling system may be a substantial cost, but that is in fact a common feature in all BRT systems in the world. Therefore, the spotlight would mostly shine on the maintenance of the elevated infrastructures.”
The institute said attention now needed to be focused on the upcoming KL-Klang BRT line.
"The many lessons learnt from the Sunway BRT line need to be incorporated into future BRT lines in the country, starting with the approved but yet to be implemented 34km KL-Klang BRT line.
“A sum of RM1 billion was initially announced for this project in the 2016 budget. But up till now, there has been little additional information regarding the estimated cost for this project, the exact location of the 25 stations along the 34km line, the overall design and route alignment of the line, and the tender process to parcel out these contracts, just to name a few of the more crucial elements.
"And this is a project that is supposed to begin construction in the third quarter of the year and be completed by 2018!
"The lessons learnt from the Sunway BRT line must be incorporated into all aspects of the KL-Klang BRT system, including but not limited to the following, such as proper costing that is transparent for different BRT models; a BRT masterplan which integrates the planned stations with other public transport hubs and stations; open and competitive tender process for construction of various parcels of the BRT line; financing structure of the construction contract for the BRT line, including ownership of the physical infrastructure post construction; operation and management of the BRT line, including proposed fare structure based on financing and operational costs; and, inclusion of the local authorities of Selangor and KL among the stakeholders in planning for an integrated public transport network that is linked to the BRT line.”
The institute wished to know why the Subang Jaya Municipal Council was not given much say in the design and route alignment of the Sunway BRT line, which is in an area within its jurisdiction.
“We have to demand that our local authorities play a bigger role in the proposal of local transit solutions, because ultimately, they are more familiar with the locality than a federal agency. Certainly, it is easier to hold them accountable should they bow to corporate pressure on issues that concern public welfare, instead of the relatively distant federal agencies.
"The mistakes associated with the Sunway BRT line need to be avoided to enable the KL-Klang BRT line to be accessible, affordable, efficient and cost effective,” the report concluded.
The Sunway BRT line was built to relieve traffic congestion in Bandar Sunway and Subang Jaya, as well as to link the Sunway area to the KTM Komuter line via the Setia Jaya KTM station, and to the Kelana Jaya Line extension via the USJ 7 LRT station. – February 28, 2016.
http://www.themalaysianoutsider.com/cityne...nstitute-report
Learn from costly mistakes of Sunway BRT, says Penang Institute
BY NOEL ACHARIAM
Published: 28 February 2016 7:01 AM
Penang Institute is questioning the manner in which the contract for the construction of the Sunway Bus Rapid Transit (BRT) project was awarded, and the way the system was designed, in a report entitled "The Sunway Bus Rapid Transit (BRT) Line: Lessons for The Future".
The report states that the choice of contractor had raised many questions in terms of conflict of interest and private sector "capture" of a public infrastructure project.
“The Sunway BRT line was officially launched by Prime Minister Najib Tun Razak on June 2, 2015. Costing a total of RM634 million – which averages out at RM117 million per km – the 5.4km elevated BRT line appears to be on the high end of the cost spectrum for BRT systems.
“The manner in which the design and contract of this BRT system was decided upon – via a direct negotiation public private partnership (PPP) contract – raises many questions in terms of conflict of interest and private sector ‘capture’ of a public infrastructure project," said the report.
The contract to build the elevated BRT line was awarded to Sunway Construction, a subsidiary of Sunway Bhd, which is the biggest beneficiary of the Sunway BRT line, which has many properties (already built and in the process of being built), businesses and educational institutions that is served by the Sunway BRT line”.
“The inclusion of Sunway Bhd as one of the stakeholders in this PPP project via its Corporate Social Responsibility contribution (15%), the partial funding of this PPP project via the Facilitation Fund (15%), which comes under the Public Private Partnership agency in the Prime Minister’s Department (otherwise known as UKAS), all point towards possible explanations for the decision to build the elevated BRT line at what seems to be a high cost.
“The private sector ‘capture’ of this PPP project is reflected in the naming of the BRT stations, whereby four out of the seven stations have ‘Sunway’, or an abbreviation of Sunway, in their names, and one station called 'South Quay' takes the name of one Sunway’s property developments.”
The report said the Sunway BRT had also set a poor precedent with its exorbitant fare structure averaging RM1 per km.
“According to the structure guidelines issued by the Land Public Transport Commission (SPAD), to travel the equivalent of 24km on a BRT line in Malaysia, one would have to pay RM10.
"For the proposed KL-Klang BRT line, a one-way journey of 34km would cost RM12.10. Do the math and the monthly expenditure on BRT fares will come up to RM484. This represents almost 54% of Malaysia’s legislated minimum wage figure of RM900, and will be a very significant expenditure indeed.”
The institute said the ludicrously high fee structure also calls into question the decision to build an elevated BRT and the process by which the contract was awarded.
“Were there any studies done by either UKAS, SPAD or Prasarana on the possible fare structure of the Sunway BRT Line? Did Prasarana have to finance the RM444 million of its share in the construction costs of the Sunway BRT, given that it was already in debt to the tune of RM13.91 billion at year end 2014?
“A one-way ticket from Sunway-Setia Jaya to USJ7 will cost RM5.40. By comparison, even after its fare revision in December 2015, it would only cost RM4 to travel from the Kelana Jaya LRT station to the KLCC LRT station. Taking the BRT costs significantly more than the toll rates on highways leading to KL, and will form a significant financial burden on those who rely heavily on public transport, such as the lower income group.”
The institute said students will also be among those affected, as they do not have an income.
“These exorbitant fares definitely have an impact on ridership, and have already contributed to low ridership figures compared with during the period of free rides, where it was normal for stations and buses to be packed.
"This does not bode well for the route’s original aim of reducing congestion in the Bandar Sunway area, as given the comparatively cheaper toll rates, people may choose to drive to and from Bandar Sunway instead.”
The institute said the decision to build the costly elevated BRT line, funded primarily by an already heavily indebted Prasarana (70%), could explain the decision to structure the fares of the BRT line at the exorbitant rate of RM1 per km.
“After a trial period of two months, in which the rides on the BRT Line were offered for free, the exorbitant fare structure caused a 63% drop in the average daily ridership when it was implemented in August 2015.
"The ridership recorded in August 2015 – 4,616 per day or 256 per hour – is approximately 11% of the initial projected ridership of 2,400 per hour."
The institute said Prasarana’s rationale for the fare structure, that it was impossible to cover the Sunway BRT operational cost at the current ridership rate, begs the question of how that would work out, given that ridership has drastically fallen since the introduction of the fares.
“Again, detailed breakdowns of the operational cost are unavailable, although we can speculate that the additional cost comes from the maintenance of the elevated bus lanes, lifts and escalators in all the elevated stations. One might also argue that the signalling system may be a substantial cost, but that is in fact a common feature in all BRT systems in the world. Therefore, the spotlight would mostly shine on the maintenance of the elevated infrastructures.”
The institute said attention now needed to be focused on the upcoming KL-Klang BRT line.
"The many lessons learnt from the Sunway BRT line need to be incorporated into future BRT lines in the country, starting with the approved but yet to be implemented 34km KL-Klang BRT line.
“A sum of RM1 billion was initially announced for this project in the 2016 budget. But up till now, there has been little additional information regarding the estimated cost for this project, the exact location of the 25 stations along the 34km line, the overall design and route alignment of the line, and the tender process to parcel out these contracts, just to name a few of the more crucial elements.
"And this is a project that is supposed to begin construction in the third quarter of the year and be completed by 2018!
"The lessons learnt from the Sunway BRT line must be incorporated into all aspects of the KL-Klang BRT system, including but not limited to the following, such as proper costing that is transparent for different BRT models; a BRT masterplan which integrates the planned stations with other public transport hubs and stations; open and competitive tender process for construction of various parcels of the BRT line; financing structure of the construction contract for the BRT line, including ownership of the physical infrastructure post construction; operation and management of the BRT line, including proposed fare structure based on financing and operational costs; and, inclusion of the local authorities of Selangor and KL among the stakeholders in planning for an integrated public transport network that is linked to the BRT line.”
The institute wished to know why the Subang Jaya Municipal Council was not given much say in the design and route alignment of the Sunway BRT line, which is in an area within its jurisdiction.
“We have to demand that our local authorities play a bigger role in the proposal of local transit solutions, because ultimately, they are more familiar with the locality than a federal agency. Certainly, it is easier to hold them accountable should they bow to corporate pressure on issues that concern public welfare, instead of the relatively distant federal agencies.
"The mistakes associated with the Sunway BRT line need to be avoided to enable the KL-Klang BRT line to be accessible, affordable, efficient and cost effective,” the report concluded.
The Sunway BRT line was built to relieve traffic congestion in Bandar Sunway and Subang Jaya, as well as to link the Sunway area to the KTM Komuter line via the Setia Jaya KTM station, and to the Kelana Jaya Line extension via the USJ 7 LRT station. – February 28, 2016.
it is expensive. and most of the time kosong.
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