The implementation cost for the Bus Rapid Transit (BRT) system for Iskandar Malaysia is expected to cost not more than RM3 billion, said Iskandar Regional Development Authority (IRDA) chief executive Datuk Ismail Ibrahim.

"At the moment, we do not have the final value, however, it is expected to cost not more than RM3 billion, which covers infrastructure cost for building the line, operation cost including buses and several other application costs.

"It also covers (cost) during the intiial years which may have a shortfall in its operations," he told reporters during a buka puasa do organised by IRDA and Medini Iskandar here yesterday.

The BRT system will be developed in three phases and will cover close to 90 percent of the Iskandar Malaysia region.

The first phase of the project is expected to start operation by 2020.

Ismail said IRDA was in the process of planning the working paper to get the approvals from the stakeholders for the subsequent phases including in terms of financial module and engineering.

Asked on funding for the project, he said the public-private collaboration project was expected to involve resources from both parties.

"In terms of infrastructure, of course, we hope the government will finance (the project) while in terms of operations, it will be funded by the private sector which will participate in the project," he said.

Ismail said the project would give priority to existing private companies in Iskandar Malaysia, especially bus operators with good track record.