Sistem Transit Aliran Ringan Sdn Bhd (STAR-LRT)

cancelled

Sistem Transit Aliran Ringan Sdn Bhd (STAR) won the first concession contract to build and operate a light rail line in Malaysia's Klang Valley. The 60-year BOT franchise contract was signed in two stages: stage I in December 1992, and stage II in June 1995. Construction of phase I (12km) was completed in November 1996, and opened for operation on December of the same year. Construction of phase II (15km) started in August 1995, with completion in 1998. The complete line runs from Sintul Timur (North) to Kimul (South). The project cost M$3.57 billion (US$1.4 billion): phase 1 cost M$1.27 billion (US$500 million) and phase II cost M$2.3 billion (US$ 900 million). The funding came from share capital, commercial loans, EPF loan, and government support capital. Taylor Woodrow is the main contractor for both phases of the project. In October 1998, the government announced the possible creation of an Infrastructure Fund and was discussing a merger of PUTRA and STAR. After some years of operation, both the STAR LRT and the PUTRA LRT faced serious financial difficulties in servicing loans related to construction of infrastructure and purchase of rolling stock. In August 2002, the state owned Syarikat Prasarana Nasional Bhd (SPNB) took over of all assets and operations of STAR (Sistem Transit Aliran Ringan Sdn Bhd) and PUTRA Sdn Bhd (Projek Usahasama Transit Ringan Automatik). SPNB had in November of 2001 purchased the outstanding debts of STAR and PUTRA totaling about RM5.5 billion via the issuance of RM5.5 billion fixed rate serial guaranteed bonds to the lenders of both companies. Upon completion of the second phase which was scheduled for June 2002, the operations of the two systems were to be integrated and improved.