Penang to push ahead with LRT project, says Chow

Penang is adamant to push ahead with the implementation of the RM9.5 billion light rail transit (LRT) project, Chief Minister Chow Kon Yeow said today.

– Photo courtesy of PTMP.

GEORGE TOWN: Penang is adamant to push ahead with the implementation of the RM9.5 billion light rail transit (LRT) project, Chief Minister Chow Kon Yeow said today.

He said this was despite the Finance Ministry having voiced its objection thrice towards the state government’s US$500 million (RM2.04 billion) loan application from the Asian Development Bank (ADB).

“I am disappointed that the Finance Ministry had thrice stated that it would object the state government’s loan application and withdrawal of its sovereign guarantee to partly finance the Komtar – Bayan Lepas LRT project although the project is very important to the state’s economic development.

“I just want to remind the Finance Ministry and (the) Perikatan Nasional (government) that former prime minister Tun Dr Mahathir Mohamad had stated in a letter dated Oct 1, last year that bonds issued by the state government with regards to the said project would be guaranteed by the federal government.

“Nevertheless, we will not give up. Instead, we will proceed with the implementation of the LRT project as the state government had other financing options to fund projects under the Penang Transport Mater Plan (PTMP),” he said today.

As such, Chow said, the state would continue to inject confidence in the federal government to give priority towards funding the LRT project and accord just treatment to Penang which plays a vital role in leading manufacturing foreign direct investments (FDIs), creating thousands of employment opportunities not only for Penangites but those from the northern region.

Chow said he had also shared similar sentiments with Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed during discussions on allocations under the 12th Malaysia Plan for the state last Thursday.

“I have also voiced similar concerns with Finance Minister Senator Datuk Seri Tengku Zafrul Abdul Aziz during a dialogue session on the Budget 2021 Consultation for Penang organised by the Northern Corridor Implementation Authority on Aug 8 and during the 12th Malaysia Plan engagement sessions with Datuk Seri Mohamed Azmin Ali on Aug 2 last year,” he said.

Yesterday, Zafrul said the federal government has yet to decide on withdrawal of its sovereign guarantee for the US$500 million (RM2.04 billion) ADB loan application by the Penang government to partly finance its LRT project.

He had said that the government received an application from the Penang government on Jan 25, last year to fund the rail project.

He had also said that it was decided on July 19, last year that the Penang government could not apply for the loan without prior approval from the federal government. At present, he noted, the federal government has yet to receive the due diligence report from the ADB.

Zafrul had also clarified that the federal government did not withdraw the guarantee as there was currently none, but it does not mean that the project has been scrapped.