GEORGE TOWN, Aug 16 — The Penang government has not formally contacted the Finance Ministry to apply for a loan from the Export-Import Bank of China (EXIM) to part finance a Penang Transport Master Plan (PTMP) project.
Penang Chief Minister Lim Guan Eng said the state government could not submit the application yet as they are still waiting for approvals for the larger RM27 billion PTMP.
“We are still waiting for the federal government's approval for the LRT line under the PTMP,” he said in a press conference at his office today.
“Once we get the approval for the LRT line, we will start the process to submit a formal application for the loan,” he said.
Lim was responding to Second Finance Minister Johari Abdul Ghani, who said the Finance Ministry is yet to receive any formal application from the Penang government.
The minister said the state must use the right channels and adhere to Bank Negara procedures before applying for the loan.
In May, Lim announced that the state will seek a RM1 billion loan from China as a bridging fund for the proposed Penang South Reclamation (PSR) project.
The PSR project, consisting of the reclamation of three islands off the southern coast of the island, is meant to fund the whole PTMP.
Two of the islands, A and B, will be reclaimed first to fund phase one of the PTMP.
The PTMP will be implemented in two phases; phase one, from 2016 to 2023, will costs RM17 billion and includes the Bayan Lepas LRT and highway projects.