ECRL would leave Malaysia with 30 years of debt, says Dr M

PUTRAJAYA, Jan 29 — The cost of continuing with the East Coast Rail Link would leave the country indebted for an entire generation, said Prime Minister Tun Dr Mahathir Mohamad.

Speaking at a press conference after the launch of the National Anti-Corruption Plan (NACP) here today, Dr Mahathir said the compensation for ending the ECRL project was significantly lower than the RM100 billion he estimated it would cost to see it to completion.

“Huge compensation is not as huge as the amount of debt we will carry for the next 30 years.

“It is not that we do not want to honour our contracts, but we just cannot pay. These contracts will cost us more than RM100 billion,” he said.

Dr Mahathir said the debt incurred by the Barisan Nasional government for mega-infrastructure projects was too great, forcing his administration to try and renegotiate some.

The PM also said the burden on public finances was beyond what Putrajaya could reasonably honour.

“It will impoverish us so we seek understanding of the parties concerned, that it is not because we just want to frustrate or throw out a contract, but because we are really tied in terms of finance,” he said.

Touching on the conflicting statement by his ministers about the status of the ECRL, Dr Mahathir conceded that these were not properly coordinated.

“Sometimes, some ministers make an announcement before it is due.

“I admit a mistake was made but we are going to correct that mistake,” he said, adding that Finance Minister Lim Guan Eng will provide a full explanation on the project soon.

Confusion arose over the ECRL after Economic Affairs Minister Datuk Seri Mohamed Azmin Ali announced that the Cabinet had agreed last Thursday to its termination, prompting Lim to express surprise over the disclosure.

Yesterday, Dr Mahathir also told the media to wait for the official statement to be released, adding that the new Pakatan Harapan government was bound to make mistakes.