The RM55 billion price tag for East Coast Rail Line (ECRL) is not for the cost of construction alone, Transport Minister Liow Tiong Lai said.

Instead, the touted RM55 billion refers to the Financing Framework Agreement, Liow was quoted as saying by Sin Chew Daily today.

He said the cost of construction was very transparent because industry players know the cost for each kilometre of railroad that is laid.

Therefore, the cost for each kilometre of the ECRL cannot exceed that amount. No further details were given in the report.

Liow hoped that opposition parties would not politicise the matter because the project will bring economic benefits to Malaysia.

He spoke to Sin Chew Daily after a meeting with his Chinese counterpart Lee Xiaopeng in Beijing yesterday.

Putrajaya has awarded the ambitious double-track rail project, linking Port Klang, Kuantan and Kota Baru, to China Communications Construction Company.

Financing will be provided by Export-Import Bank of China (China Exim Bank).

Both companies are owned by the government of China. CCCC has been blacklisted by the World Bank for alleged corrupt practices.

The debarment by the World Bank and the fact that there was no open bidding process for the ECRL project have been raised by critics.

Jelutong MP Jeff Ooi has also demanded that the government discloses the detailed technical report for the project and the terms of the loan.

Meanwhile, New Villages and Chinese SMI Minister Wee Ka Siong told the daily in Kuala Lumpur yesterday the project was given to China because the country was very experienced in the industry.

He said the opposition should not complain about the price tag because it was cheaper than what Japan and European countries could offer.

"Apart from giving Malaysia favourable financing rates, China is also willing to transfer rail technology to us," said Wee.