SME Bank allocates RM1b loan to local contractors for ECRL's civil work
SME Bank will allocate RM1 billion loan for local contractors to complete the 40 percent civil work on the East Coast Rail Link (ECRL) project.
These contractors will be able to borrow up to RM50 million with an interest rate between six to seven percent...
SME Bank will allocate RM1 billion loan for local contractors to complete the 40 percent civil work on the East Coast Rail Link (ECRL) project.
These contractors will be able to borrow up to RM50 million each with an interest rate between six to seven percent.
The loan will be available after the signing of the memorandum of understanding between SME Bank, Malaysia Rail Link Sdn Bhd and China Communications Construction (ECRL) Sdn Bhd in Kuala Lumpur today.
Entrepreneur Development secretary-general Wan Suraya Wan Mohd Radzi, who attended the ceremony on behalf of minister Redzuan Yusof, said the loan is provided to ensure that the ECRL project is completed as planned.
"The facility is in the form of term and revolving financing and is capped at RM50 million for each applicant, excluding bank guarantees," she said.
Loan applications above the capped amount will be considered on a case-to-case basis, Wan Suraya added.
Also present at the event were Finance Minister Lim Guan Eng and China's ambassador to Malaysia Bai Tian.
In his speech, Lim (photo) said the SME Bank, established in 2005, has provided a total loan of RM32 billion for 17,000 SMEs thus far and supported the development agenda of the country.
"For a start, the SME Bank is offering its (loan) facility of up to RM1 billion. About 300 to 400 SMEs have applied," he told the media later.
The 640km ECRL project which resumed in May has allocated 40 percent of its civil work worth RM10 billion to local contractors.
It was reported in August that a total of 331 local companies were shortlisted as potential tenderers for civil work packages.
Meanwhile, Lim also dismissed the possibility of ECRL's price tag being reduced further from the RM44 billion.
"I am not aware. But if it can be reduced, it is really good. But now, it is already signed. So, I don't think so. It is already fixed (at RM44 billion)," he said.
After ECRL supplementary contract was inked on April 12, with Daim Zainuddin reportedly saying that the price tag can come down even further from RM44 billion.
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