GEORGE TOWN, July 25 — The Penang state government is considering several funding methods to fund the simultaneous construction of the Pan Island Link 1 (PIL 1) and Light Rail Transit (LRT) projects.

Penang Chief Minister Chow Kon Yeow said this was why the state is considering asking for a soft loan of RM1 billion from the federal government to allow the two infrastructure projects, under the Penang Transport Master Plan (PTMP), to be built within a shorter period of time.

“The idea for the soft loan came from SRS Consortium so that the projects can be completed sooner,” he said in a press conference today.

He said with the loan, both projects can be implemented simultaneously and completed within six years.

“If we wait for the land reclamation to sell it to raise funds, which will take another two to three years, we can only implement one project at a time and it will take 12 years to complete both projects,” he said.

He said the request for a soft loan from Putrajaya was only one of the options the state is considering.

The state announced last year that it will be taking a RM1billion loan from Export-Import Bank of China (EXIM) as a bridging fund for the Penang Transport Master Plan (PTMP) project.

Chow said the state will first apply for a soft loan from the federal government and if it is rejected, the state may consider other options, including taking a loan from EXIM.

He said they could also look at other financial packages to speed up the project.

The massive multi-billion PTMP, estimated to cost around RM40 billion now, was to be funded by the Penang South Reclamation (PSR) project.

PSR involved the reclamation of three islands off the southern coast of the island and the land on these islands will be sold to raise funds to fully finance the PTMP.

Chow said the matter of funding is still premature at this juncture as the state is yet to obtain federal approval for the LRT.

“This is all very academic until we get full approvals to go ahead with the project,” he said.

Currently, the state is publicly displaying the Environmental Impact Assessment for PIL 1, a 19.5km highway connecting the north of Penang to the south by cutting through hills.