The Selangor assemblywoman said the cost of the project would affect the price of train tickets as well as cargo freight fees. Failing that, the government would need to subsidise these with taxpayers’ money to keep prices competitive.
“Either way, the people will eventually need to pay for it.”
The ECRL project is said to be the largest ever railway project to be undertaken by the private sector. It was announced by Prime Minister Najib Razak when tabling the Budget 2017 in October last year.
The project will involve the construction of a 600km stretch, connecting the Klang Valley with Kuantan, Pahang, up to Terengganu and Tumpat in Kelantan.
It is scheduled to begin in July and is expected to be completed in June 2024.
The project was awarded without open tender to China Communications and Construction Company (CCCC) via soft loans from the Export-Import Bank of China (China Exim Bank).
An earlier feasibility study by government-appointed consultant HSS Integrated had estimated the cost of the project would be less than RM30 billion.
In a statement today, Yeo said the study had estimated that a 545km route would cost RM29 billion, or RM53.2 million per km.
“Why the sudden increase to RM55 billion for an additional 10% of the rail length?”
As roughly 80km of the ECRL mainline would be in Selangor, Yeo said the Selangor government should take measures to prevent the project from becoming a “white elephant”.
“Allowing the hugely overpriced ECRL project to go on will jeopardise the next generation as they are the ones who’ll need to pay for the high price tag of the ECRL.”
She urged the Selangor government not to cooperate on land acquisition or give approvals from local authorities until everything about the project was above board.
It should also pressure the federal government to conduct an open tender for the ECRL project, she said.
She added that the federal government must disclose all relevant documents on the project, including the HSS feasibility studies; the framework financing agreement and engineering, procurement, construction and commissioning contract; the estimated ridership; and future price of train tickets and cargo transportation.
Liow explains price rationale for RM55b East Coast Rail Link
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