Mahathir claims ECRL may end up costing a whopping RM130b
PARLIAMENT | The East Coast Rail Link (ECRL) project could end up costing the government a whopping RM130 billion, Prime Minister Dr Mahathir Mohamad said today.
This, he said, included interest incurred from the loan to finance the project.
PARLIAMENT | The East Coast Rail Link (ECRL) project could end up costing the government a whopping RM130 billion, Prime Minister Dr Mahathir Mohamad said today.
This, he said, included interest incurred from the loan to finance the project.
"If we want to stop this project, we will be forced to pay billions in compensation.
"But if we continue, our debt will be in the billions which will take decades to pay off. And finally, the loan with interest will balloon to RM130 billion," Mahathir told the Dewan Rakyat.
Mahathir later clarified how he arrived at the figure when met at the Parliament lobby.
"If we continue (with the ECRL), we will be borrowing as much as RM60 billion and to pay back, we will have to pay with interest and that will take us 30 years.
"And in 30 years' time, the amount added to interest will reach over RM130 billion.
"That is why we cannot afford this project," the prime minister told reporters.
The ECRL is a BN-era project, which former prime minister Najib Abdul Razak said would cost RM55 billion and be financed with a loan from China.
The Pakatan Harapan government is currently renegotiating the project with Beijing.
Mahathir had previously reiterated the possibility of proceeding with the ECRL project, on condition that an ideal price for the project is agreed to by Malaysia and China.
In an interview with the South China Morning Post in Manila, Philippines, earlier this month, Mahathir said he had a price point in mind but the details could not be revealed at the time.
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