In a blogpost, Lim said there were multiple problems with Sarawak Report’s “exposé”, including the fact that the projected cost of the ECRL was already RM60 billion and not RM30 billion as alleged by Sarawak Report.
This, he added, was widely reported in the media several years ago.
He also pointed out that the project was a Privately Funded Initiative (PFI) and was to be funded by the private sector, not the government.
“So, is the private sector expected to go along and bail out 1MDB?”
Lim also said that ECRL’s RM60 billion price tag did not seem to be over-priced compared with Penang’s undersea tunnel project.
“At RM60 billion, this 620km long project – rail and rolling stock – which cuts through peninsular Malaysia’s Titiwangsa mountain range which will include much hard-rock tunnelling and bridges will cost about RM96.7 million per km.”
Lim said in comparison, the undersea tunnel, which will cost the Penang state government RM3.5 billion, would cost some RM555 million per km.
He also noted that the Land Public Transport Commission (SPAD) had issued a request for information (RFI) in the market for the ECRL, making it difficult to inflate the price of the project as alleged.
He also responded to Sarawak Report’s claims that the “bailout” included funds which would be channelled through Jho Low, via the purchase of two companies he purportedly controls, namely Putrajaya Perdana Berhad (PPB) and Loh and Loh Corp (LLCB).
Lim said the supposed buyouts of PPB and LLCB did not make sense as the price to bail out the two profitable companies with a long track-record was “ridiculously cheap and below market value”.
Lastly, Lim argued that Sarawak Report’s claim that the Chinese were supposed to buy out the Air Itam land in Penang for USD850 million (RM3.4 billion) was flawed.
“The Air Itam land is not considered a ‘missing’ asset. Thus, any sales proceeds would go to 1MDB and not to IPIC where assets are alleged to be ‘missing’.
“Thus how is money going to 1MDB going to be used to cover ‘missing’ assets in IPIC?”
IPIC is the International Petroleum Investment Company, formed by the Abu Dhabi government in 1984. It is now embroiled in a debt payment dispute with 1MDB.
Earlier, Sarawak Report alleged that the cost of the ECRL would be inflated and that the project would be awarded to a Chinese state-owned company.