KUALA LUMPUR: The East Coast Rail Link (ECRL) will be a game changer in transforming the people's socio-economy in the East Coast region, Deputy Finance Minister Datuk Othman Aziz told the Dewan Rakyat today.
He said the project, which will link Port Klang and Pengkalan Kubor in Kelantan, is expected to increase the Gross Domestic Product (GDP) for the East Coast region by 1.5 per cent.
The ECRL, which will accommodate passenger trains that can travel at a maximum speed of 160 km per hour and goods trains at maximum speeds of 80 km per hour, would enhance the efficiency of freight transportation.
ECRL can also accelerate the momentum of manufacturing industries to cater for more business demands in the potential markets in southern and eastern regions.
"The ECRL is a people's infrastructure project that will not only catalyse socio-economic transformation but leave a great impact on the economy and the people especially those in the East Coast.
"The project is expected to be completed by the end of the second quarter in 2024.
"It is expected to further boost the productivity of the nation, bringing huge economic benefits for the people," he said in reply to Datuk Dr Ewon Ebin (BN-Ranau).
Othman added that loan repayment for the ECRL project will take 20 years and only start in 2024 upon completion of the project.
Eighty-five per cent of the project would be funded by a soft loan from Chinese Exim Bank, at an interest rate of 3.25 per cent.
The remaining 15 per cent would be financed with sukuk programmes through local banks.
At a price tag of RM55 billion, the ECRL project is expected to cover its operating cost through passenger fares, freight charges and non-fare revenues.