KUALA TERENGGANU: The federal government still owes the state government RM1.651 billion, which includes repayment for the construction of the East Coast Highway 2 (LPT 2) totalling RM1.431 billion and the Special Fund (Dana Khas) of RM220 million, the State Assembly was told today.
Menteri Besar Dr Ahmad Samsuri Mokhtar said the actual costs for the construction of the LPT 2 was RM1.85 billion but until June this year, the Federal government had disbursed only RM418.5 million.
“The RM418.5 million covered the costs for the construction of the Marang-Awana Kijal road (RM118.5 million), construction of affordable houses (RM100 million) and advance payment not repaid (RM200 million).
“The balance still not paid by the Federal government to the State for the construction of LPT 2 is thus RM1.431 billion,” he said, when replying to a question by Hishamuddin Abdul Karim (Pas-Tepoh) who wanted to know the amount received from the Federal government and the debt still not paid to the State.
Samsuri said the repayment for the Special Fund had been agreed following a Cabinet decision and a Federal Special Fund meeting in January 2012, and the amount that should be returned to the State government totalled RM2.170 billion.
“Every year from 2011, the State government received RM220 million until 2020. However, up until now, no payment was received for 2019 and 2020. But for this year, we have received a letter from the Finance Minister for postponement of the payment.
“The State debt to the Federal government as at June this year amounted to RM481.24 million and we are negotiating with the Federal government to offset it with the receivables (RM1.651 billion) soonest possible.
“We have to wait for a decision. As you can see, we are not on a spending spree as widely speculated by certain quarters. It is all accounted for,” he added.
Earlier, Samsuri said the East Coast Rail Link (ECRL) was designed to accommodate 70 per cent of cargo handling and would become the catalyst for growth in certain areas along the railway, especially in the industrial districts of Dungun and Kemaman.
Samsuri was replying to a question by Ir Saiful Azmi Suhaili (Pas-Kemasik) who wanted to know if the government would add value to the ECRL project.
“Transit-oriented development would maximise the potential impact of the massive project. Discussions are ongoing with the Malaysia Rail Link Sdn Bhd.
“I will have a discussion with MRL on the new alignment for the speed train tomorrow. The earlier proposal had eight stations proposed but the last meeting decided only six stations will be built. But we want the plan to revert to the original and hopefully on 26 July, we will know about the new alignment,” he said.
He added that the State government was also in discussion with ECERDC (East Coast Economic Region Development Council) on redesigning social-economic projects along the new alignment aimed at attracting investors and encourage downstream industries.