THE East Coast Rail Link loan has been finalised, following a successful renegotiation between project owner Malaysia Rail Link Sdn Bhd (MRL) and China’s Export-Import Bank (Exim Bank), said Anthony Loke.

“I was informed that the renegotiation between MRL and Exim Bank with regard to the financing of the ECRL project has been finalised,” said the transport minister in his keynote address at the relaunch of the mega project in Dungun, Terengganu, this morning.

“On that note, a supplementary agreement on the financing for ECRL will be inked… in the near future.”

Exim Bank will finance up to 85% of the RM44 billion cost for Phases 1 and 2 of the project.

Loke said the government will pay a lower interest rate after the cost was slashed from the initial RM66 billion.

The interest payment is expected to be reduced by RM12.22 billion.

ECRL was revived in April after being put on hold last July, following a renegotiation between Putrajaya, and main contractor China Communications Construction Company Ltd and the Chinese government.

MRL CEO Darwis Abdul Razak said the total repayment of the financing facility payable to Exim Bank has been reduced to RM24 billion from RM36 billion previously.

Six stations were dropped for the project’s revived version, bringing the total number of stations to 20.

The project’s completion rate has reached 10.18%, after taking into account the realignment.

The Terengganu state government recently said it is looking to renegotiate the locations and number of stations in the state.

Terengganu Menteri Besar Ahmad Samsuri Mokhtar, who was also present at the press conference, said the negotiations are still ongoing.

The discussions with MRL is not only limited to the number of stations, he added.

Meanwhile, Loke said what is more important is that value is added to the project despite the reduction in the number of stations.

“Let’s not only look at the number of stations.What is more important is how we add value to the project.”

The project will also spur development along the project route, especially in the industrial area, he said.

Loke added that the government will revisit the scrapped stations in the future if there is demand for it.

The stations were written off after passenger traffic was seen as being below expectation.

The Environment Impact Assessment, Social Impact Assessment, and Heritage Impact Assessment reports for the new alignment is expected to be submitted to the authorities by the first quarter of 2020. – July 25, 2019.