PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today said the East Coast Rail Link (ECRL) will be the catalyst to close the economic gap between the east and west coasts.
He said based on the government's calculation, the ECRL could give the extra boost of 1.5 per cent growth in terms of gross domestic product for the three states in the east coast.
“Even more so when it (ECRL) is linked with Port Klang. It will certainly stimulate the economy.
“We need connectivity. Without connectivity, we cannot open (new economic) areas as we do in the west coast.
“These areas need to be stimulated. If not, there will be a divide. We want to balance things out. This (the ECRL) is one of our big projects that can reduce the gap between the east and west coasts,” he said.
Najib also brushed aside claims that the cost for the ECRL was too expensive.
“This is untrue because they have to realise that every project has its own uniqueness from the aspects of topology.
“If we are forced to build tunnels for example, and cut across swampland, then there will certainly be an increase in cost that we have to bear,” he said.
The prime minister said the government would conduct benchmarking exercises and assessments as well as value managements to ensure the project has a cost the government could vouch for.
“If we look at the whole deal, including the financing given by Exim Bank of China that has attractive terms and conditions, the project can be seen as an enabler to stimulate our economy.”
Malaysia has sealed the deal to build the East Coast Rail Link (ECRL) with China Communication Construction Company Ltd (CCCC), with financing via soft loans from Export-Import (Exim) Bank of China.
The Engineering, Procurement, Construction and Commissioning agreement was recently signed between Malaysia Rail Link Sdn Bhd, CCCC and China Communications Construction Company (M) Sdn Bhd.
The project, estimated to cost RM55 billion, is one of the high-impact projects under the 11th Malaysia Plan.
When completed, the 620km ECRL will make products from the east coast more competitive due to cheaper transport costs, and will raise the income of industries and businesses located along the rail link route.
The project will have three phases - from Port Klang to the Integrated Transport Terminal (ITT) in Gombak; from ITT Gombak to Dungun; and from Dungun to Tumpat.
The government hopes to finalise the ECRL by the end of this year so that construction on the project can start in early 2017.