Putrajaya should heed Nazir Razak’s advice on ECRL

Media Statement by Yeo Bee Yin, ADUN Damansara Utama, on Friday 21 July 2017 in Petaling Jaya.

Putrajaya should heed Nazir Razak’s suggestion to thoroughly scrutinize East Coast Rail Line (ECRL).

The Edge Financial Daily reported that Nazir Razak has called for government scrutiny on China’s One Belt, One Road (OBOR) initiatives, particularly the East Coast Rail Line (ECRL) project at the roundtable on “China’s Belt and Road Initative in ASEAN: Economic Opportunities and ASEAN Centrality”.

We have repeatedly raised concerns regarding the East Coast Rail Line (ECRL) but all seem to have fallen into deaf ears. Now even Nazir Razak, who is a prominent banker, raised concerns over the value proposition of the project as well as the debt implications, we hope that Putrajaya will heed his suggestion to thoroughly scrutinize the deal.

ECRL - learn from Sri Lanka before it's too late.

Media Statement by Yeo Bee Yin, ADUN Damansara Utama, on Friday 21 July 2017 in Petaling Jaya.

Putrajaya should heed Nazir Razak’s suggestion to thoroughly scrutinize East Coast Rail Line (ECRL).

The Edge Financial Daily reported that Nazir Razak has called for government scrutiny on China’s One Belt, One Road (OBOR) initiatives, particularly the East Coast Rail Line (ECRL) project at the roundtable on “China’s Belt and Road Initative in ASEAN: Economic Opportunities and ASEAN Centrality”[i].

We have repeatedly raised concerns regarding the East Coast Rail Line (ECRL) but all seem to have fallen into deaf ears. Now even Nazir Razak, who is a prominent banker, raised concerns over the value proposition of the project as well as the debt implications, we hope that Putrajaya will heed his suggestion to thoroughly scrutinize the deal.

ECRL project is awarded to China Communication Construction Co Ltd (CCCC) without open tender. At RM 55 billion price tag, it is deemed the most expensive railroad of its kind by The Edge Weekly after benchmarking it against other rail projects around the world. The project is going to be financed by a loan from China via Export-Import (Exim) Bank of China. Putrajaya has repeatedly said that the loan is offered at low interest rate, but how “low” is the “low interest rate” ? What are the terms and conditions?

In short, it seems like with ECRL deal, most of the money that come from China via Exim bank will go back to China via CCCC, what’s left for Malaysians is an overpriced infrastructure and huge debt, only to be paid by the people in the future.

There is risk that reckless mega infrastructure constructions will send Malaysia into deep debt trap.  What happen to the troubled Sri Lanka offers a good glimpse into how mega infrastructure financed by debt without proper framework to benefit local economies through the construction and completion of the infrastructure, is not development but debt disaster in the making.

布城应该听从纳西尔拉萨的建议，全面审查东海岸铁路工程（ECRL)

百乐镇州议员杨美盈于2017年7月21日（星期五）在八打灵再也所发布的媒体文告。

布城应该听从纳西尔拉萨的建议，全面审查东海岸铁路工程（ECRL）

《The Edge财经日报》报导说，纳西尔拉萨在“中国在东盟的一带一路计划：经济契机和东盟中心”圆桌讨论上呼吁政府审查中国的一带一路计划，尤其是东海岸铁路工程（ECRL）.

我们一直重复表达我们对东海岸铁路工程（ECRL）的关切，但有关方面却似乎对此充耳不闻。现在，连重要的银行家纳西尔拉萨也对这项工程的利益价值以及我国因此亏欠中国巨额债务的影响表达关切，所以我们希望布城不要再漠视这些关切，听从建议，并全面审查这项工程。

ECRL工程是在没有公开竞标下，以550亿令吉颁授给中国交通建设公司（CCCC）。这是非常高的价格。《The Edge周报》在把这项工程和世界其他铁路工程进行国际标准衡量后，将它誉为世界上造价最昂贵的铁路。而中国出入口(Exim)银行将提供贷款来承担该工程的建筑费。交通部部长拿督斯里廖中莱重复表示，Exim银行以低利息提供这笔贷款。但是，这“低利息”究竟有多“低”呢？还有什么其他的条款吗？

总而言之，看起来在ECRL协议里，大部分透过Exim银行的来自中国的钱最终仍会透过CCCC回到中国去，而马来西亚人所获得的是一个过份昂贵的铁路和庞大的债务，这笔债务最终还是会由人民买单。