PARLIAMENT | Putrajaya has estimated that the RM55 billion East Coast Rail Link (ECRL) project can be financially independent and break even in 2032, eight years after it begins operations.

Deputy Finance Minister Othman Aziz said this during a question-and-answer session at the Dewan Rakyat today.

"ECRL is expected to be completed by the end of Q2 of 2024. The loan will be repaid in 20 years, after the completion of the project in 2024," he said.

ECRL's concessionaire, Malaysia Rail Link Sdn Bhd (MRL), will collect revenue from passengers fees, cargo fees and non-fare revenue, which includes advertisement and retail, Othman explained.

"It is estimated that a revenue of up to RM2.9 billion can be recorded in 2024. The government estimates that from 2032, the concessionaire can break even from the operational aspect and can be independent without any injection from the government," he added.

It was reported last month that the cost of ECRL's project may shoot up to RM60 billion to RM70 billion due to expenses that have yet to be factored in. 

Citing sources, The Edge reported last month that the additional costs will be for double tracking the 688km line, as well as for the acquisition of land along the route from Port Klang in Selangor, to Pengkalan Kubor in Kelantan.

The Finance Ministry, however, said earlier this month that ECRL will be laid on a "double track formation", despite initially featuring a single track arrangement.

Othman also said the ECRL project will create 10,000 employment opportunities during the construction process, and a further 3,600 skilled workers when MRL begins operating. 

He also expects the project to create 200,000 jobs indirectly.