Transport Minister Anthony Loke Siew Fook (Photo by Zahid Izzani/The Edge)

PUTRAJAYA (Aug 2): The Cabinet has on Wednesday (Aug 2) approved in principle the Ministry of Transport's (MOT) proposal regarding the redevelopment of Kuala Lumpur Sentral Station (KL Sentral), the main public transport hub in the capital, said Transport Minister Anthony Loke.

Loke said the redevelopment of KL Sentral will involve privatisation, with an estimated cost of over RM1 billion.

He added that KL Sentral will be redeveloped in collaboration with the Malaysian Resources Corporation Bhd (MRCB), the developer of the entire KL Sentral project, without involving financial implications to the government.

“In return, MRCB will get air rights to build commercial buildings or condominiums, and the government will get a modern, sophisticated station for passenger needs,” he said in a press conference here on Tuesday.

Loke said the original architecture of KL Sentral was for a capacity of only 100,000 passengers a day, but now it reaches 200,000 passengers a day.

Although the government has agreed in principle, it is still subject to further discussion between the Prime Minister's Department’s Public Private Partnership Unit (UKAS) and MRCB, where both parties are given a maximum period of two years for the purpose of discussion, he said.

“If they can finalise the cooperation earlier, then the redevelopment can be accelerated. For MOT it is an important, strategic project, which needs to be given priority,” he said.

Among the conditions set by the government through the redevelopment proposal is that KL Sentral must be redeveloped first before any other development can be started by MRCB.

During the redevelopment, Loke said KL Sentral will continue to operate as usual, and assured that it will not involve any relocation of the station.

“Once the station is completed, then MRCB will be given the right to develop their projects," said Loke.