ECRL to cost up to RM130 billion, says Dr Mahathir

Chan Kok Leong Chan Kok Leong Updated 7 years ago · Published on 20 Mar 2019 11:10AM · 4 Comments

Prime Minister Dr Mahathir Mohamad says Malaysia must re-look the ECRL project as the cost of financing it will balloon to more than RM100 billion when interest is taken into consideration. – The Malaysian Insight pic by Kamal Ariffin, March 20, 2019.

THE East Coast Rail Link (ECRL) project is estimated to cost as much as RM130 billion after factoring interest costs, said Dr Mahathir Mohamad.

The prime minister disclosed this during the question-and-answer session in the Dewan Rakyat today.

“If we continue, we will be borrowing as much as RM60 billion. To pay back, it will take us 30 years and the amount added with interest is about RM130 billion,” he later told reporters at the Parliament lobby.

“That is why we cannot afford this project.”

He could not reveal the terms because “we are still negotiating”.

The fate of the ECRL project is unlikely to be settled before he goes to China next month, he said.

“We cannot predict the time because it’s not up to us to determine alone. It’s also for the other party (China) to respond,” he said when asked if there is a deadline to conclude the negotiations.

After reassessing the project, the government felt there were some “unnecessary parts”, he said.

“We may not have to do double-tracking, for example, because the initial projection for cargo and passengers is rather small. We can postpone parts of the construction until it is required.”

Earlier in the Dewan Rakyat, Dr Mahathir said Daim Zainuddin is best suited to lead the negotiations on project.

The prime minister was answering Ismail Mohamed Said (BN-Kuala Krau) who asked why Daim, the former head of the Council of Eminent Persons, was appointed to negotiate with China, and not Finance Minister Lim Guan Eng.

“We chose based on certain abilities. Sometimes when we negotiate, we need someone who can be accepted by the other party, and we all have certain restrictions in choosing the negotiator,” Dr Mahathir said. – March 20, 2019. 

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Comments

  • Another bull craps. What somemore. What is so great about Daim ???. What is the actual amount.?? After winning GE14 it was immediately announced that it cost more than 80billions and after negotiations it was 50 % reductions andCina was willing to absorb . Now with the few famous guys running into the show it has gone up to 130 billion factoring the running interest cost but was'nt mentioned intially as it was taken as a lump sum deal.

    Posted 7 years ago by Lee Lee · Reply

    • It's a Pity your not too smart...

      Posted 7 years ago by Praveen R · Reply

    • How I wish I am really smart like you. Can you please help to enlighten me and the rakyat as well on how the costing is jumping by many folds as nothing in the project really change in the initial blue print. Taking into account that Najib is lying thru his teeth in hyping up the cost but was never near that amount of 130Bil. i am still dazed and puzzled but it seems that you are easily accepting the figure like gospel truth .. I need to learn that art from you..

      Posted 7 years ago by Lee Lee · Reply

  • This 139 billion economically unfeasible project will have bankrupted our nation if Najib and BN had won the 14th General Elections. Najib has the temerity to use the Malu Boss Ku slogan now despite the country's shame if it had to borrow this money from a foreign country. What a shameless liar and cheat we have in the guise of MO1.

    Posted 7 years ago by Panchen Low · Reply