Referring to the government’s own East Coast Economic Region Development Council (ECERDC) and a feasibility study carried out by HSS Group for the council over a period of six years, the DAP National Publicity Secretary said the project value was given as RM29 billion.
“In our research over the controversy surrounding ECRL, we have discovered that the ECERDC had appointed HSS Integrated Sdn Bhd to conduct a feasibility study on the ECRL, covering engineering studies, ridership studies, systems and rail operation studies, environmental screening, land use and socio-economic impact studies and most importantly, a full economic and financial evaluation.
“In the HSS Group’s Corporate Profile and Capability statement, the proposed ECRL route was given as approximately 545km in length from Kuala Lumpur to Tumpat, passing through Mentakab, Kuantan, Kuala Terengganu and Kota Baru.
“Most importantly, HSS stated that the project value for the project was RM29 billion, or approximately RM53.2 million per kilometer,” Pua said, adding that HSS Integrated was part of the HSS Group.
The Petaling Jaya Utara MP then cited news reports from April 2014 that quoted ECERDC CEO Jebasingam Issac John as saying that the ECRL will cost approximately RM30 billion, saying it correlates with the revelation of the HSS report.
“Hence, Pakatan Harapan elected representatives are absolutely right to heavily criticise the award of the ECRL project to China-owned China Communications Construction Company as excessively expensive, RM55 billion or RM91.7 million per kilometer.
“We challenge the Minister in the Prime Minister’s Department, who is in charge of the Economic Planning Unit (EPU), Abdul Rahman Dahlan, to make public the feasibility study conducted by HSS Engineering Group,” Pua said.
He added that HSS were appointed to carry out the ECRL feasibility study in December 2009 and completed their work in December 2015 and were paid RM8.7 million for their services.
“The EPU Minister will then have to justify to Malaysians why did Prime Minister Najib Razak award the contract to CCCC at RM91.7 million per kilometer which is 72.4% more expensive than the HSS study of RM53.2 million.
“Malaysians fear a repeat of the multi-billion dollar 1MDB scandal where the state-owned company borrowed US$3.5 billion and RM6.8 billion, or approximately RM18.3 billion (at the then exchange rate of US$1:RM3.30) to acquire Tanjong Power and Genting Sanyen power plants for RM10.8 billion,” Pua said.