Liow: Ringgit drop contributed to ECRL cost hike
The RM26 billion cost increase in the East Coast Rail Link (ECRL) project from RM29 billion to RM55 billion is due in part to the fall in the ringgit, said Transport Minister Liow Tiong Lai.
Liow said the figures cited in the project's feasibility study was based on 2009-2010 exchange rates.
“That time dollar is only RM3.2 to a dollar, now its RM4.2 and gone up to RM4.5,” Liow said while explaining the cost increase for materials.
The RM26 billion cost increase in the East Coast Rail Link (ECRL) project from RM29 billion to RM55 billion is due in part to the fall in the ringgit, said Transport Minister Liow Tiong Lai.
Liow said the figures cited in the project's feasibility study was based on 2009-2010 exchange rates.
“That time dollar is only RM3.2 to a dollar, now its RM4.2 and gone up to RM4.5,” Liow said while explaining the cost increase for materials.
The feasibility study on the ECRL was done by HSS Integrated. The company was commissioned to carry out the study in 2009, and completed it in December 2015.
Besides the currency plunge, Liow said the feasibility study did not take into account the longer track alignment, which had increased from 545km to 600km.
Tunneling through the Titiwangsa range had also increased from 30km to 50km, he said.
As such, he said, lawmakers must compare apples with apples.
“You can't compare apples with oranges,” he said, referring to the changes in the proposed project.
He then accused the opposition of spinning the facts regarding the ECRL for political gain.
Liow also assured that the details of the new alignment and the costs breakdown would be disclosed eventually.
Meanwhile, the MCA president said it was also possible for the ECRL to become viable by transporting both cargo and passengers.
The cargo, he added, would be transported from the Kuantan port to Port Klang.
“If you depend on just passengers it won't be enough, but if you combine passengers and cargo, it is viable,” he said.


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