Putrajaya has maintained that the cost of the East Coast Rail Line (ECRL) is RM55 billion. 

This is according to a parliamentary reply from the Finance Ministry (MOF) on Nov 9, amid news reports that the cost may go up to RM70 billion, due to expenses that are yet to be factored in. 

"The cost for ECRL, which involves the cost of rail construction, rail stations construction, infrastructure and others, is at RM55 billion, as generally known," said the ministry in reply to Ngeh Koo Ham (DAP-Beruas), who  asked about the cost of the project, who would be financing it, and the repayment plan. 

According to MOF, 85 percent of the project's cost will be funded via a government-guaranteed soft loan from the China Export-Import Bank (Exim Bank), while the rest will be through Islamic bond or "sukuk" from local financial institutions.

Citing sources, The Edge last month had reported 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, Selangor, to Pengkalan Kubor, Kelantan.

The financial daily said the final price for the ECRL could be between RM60 billion and RM70 billion.

Last week, MOF confirmed that the rail project would only feature a single track arrangement.

However, the track would be laid on a "double track formation," according to the ministry's parliamentary written reply.

In the written reply, MOF said the ECRL was funded with an 85 percent loan from China's Exim Bank while the remaining 15 percent will come from local financial institutions.

It said that this financing method will help ensure a competitive coupon rate or interest on the bonds and loans are obtained.

Revenue from the operations of the ECRL, once completed, will pay for the bonds and loans, the ministry added.

"The repayment on the borrowing for the cost of the ECRL will be done through revenue generated from the ECRL's operations, such as passenger fares and cargo service fees, as well as non-fare revenue such as Transit Oriented Development, advertising, telecommunications and retail," it said.