Express Rail Link (ERL) is a high-speed rail link commuter service that connects Kuala Lumpur Sentral (KL Sentral) to Kuala Lumpur International Airport (KLIA). The ERL distance is 57km, stops at 3 intermediate stations i.e. Bandar Tasik Selatan, Putrajaya and Salak Tinggi with a total construction cost of RM2.4 billion. It provides 2 types of services i.e. ERL Express and ERL Transit. KLIA ERL Extension Project would serve as the main public transport connecting KLIA main terminal to klia2 with a distance of 2.16km. This project was direct negotiated using design and built method by Express Rail Link Sdn. Bhd. (ERLSB). The project cost of RM100 millions is funded by the Ministry of Transport. Rail Operations Control is subjected to the Railways Act 1991 and later repealed by the Land Public Transport Act 2010. Through the concession agreement dated 25th August 1997, ERLSB was given the rights to operate the ERL from KL Sentral to KLIA. Superintendent Officer (SO) of the project is the Secretary-General (DG) of the Ministry of Transport. This project started on 15th July 2011 was scheduled to complete by 31st October 2012. However, it was only completed on 28th September 2013. Consequently, on 2nd May 2014, ERLSB started its operation after obtaining approval to extend its services from KLIA to KLIA2.
The audit performed from January to April 2015 at the Ministry of Transport Malaysia, Economic Planning Unit (EPU), Public Private Partnership Unit (UKAS), ERLSB and site visits at ERL klia2 in Sepang. The Audit revealed that ERL extension project was completed and started its operation on 2nd May 2014. This project achieved the rail link connection between KLIA and klia2 alongside with the opening of klia2 terminal. This connection increased the number of ERL‟s passengers by 43.2% from 6.44 million in 2013 to 9.23 million in 2014. However, there are some weaknesses caused the Government did not obtained best value for money for the expenses incurred. Some of the weaknesses identified are as follows:
i. Price negotiations were not conducted prior to the submission of project cost estimates for the approval of the Economic Council (EC);
ii. Supplemental Concession Agreement was not finalized to date despite the ERL services from KLIA to klia2 commenced operation since 2nd May 2014;
iii. Compensation claimed by ERLSB amounted to RM2.9 billion yet to be finalized. The computation formula of compensation claimed does not benefit and protect the interest of the Government; and iv. The project cost of RM129 million presented by ERLSB in Value Management (VM) lab exceeded the cost approved by the EC of RM100 million. Thus, the objectives of VM for cost saving are not achieved.