ECRL owner says project even cheaper now as Malaysia saves RM12.6b in financing cost

An aerial view of the ECRL construction site in Dungun, Terengganu July 25, 2019. ― Picture by Hari Anggara
An aerial view of the ECRL construction site in Dungun, Terengganu July 25, 2019. ― Picture by Hari Anggara

DUNGUN, July 25 ― Malaysia has gained bigger savings in financing the cost of the East Coast Rail Link (ECRL) connecting the east and west coasts of peninsular Malaysia, its project owner Malaysia Rail Link Sdn Bhd (MRL) disclosed today.

Its CEO Datuk Seri Darwis Abdul Razak today said the financing cost is now down to RM24 billion from RM36.6 billion previously.

He added that construction cost has also been reduced to RM44 billion, from RM65.5 billion.

“Essentially, it will be reduced to RM24 billion altogether, with a savings of RM12.6 billion,” he said after relaunching the 640km rail link here this morning.

He said the ECRL finance structure includes a loan amount from China’s EXIM Bank, at 85 per cent of the project cost while the other 15 per cent includes a Sukuk scheme.

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