ECRL investment cannot be recouped over the next 30 to 50 years, said Darwis

KUALA LUMPUR: The East Coast Rail Link (ECRL) project's capital investment cannot be repaid within the next 30 to 50 years, according to its owner, Darwis Abdul Razak. The project's chief executive officer stated that the project's success should be measured by its economic multiplying effect, rather than solely focusing on the returns from operations.

Darwis emphasized that the project's loan of RM72 billion should not be solely judged by the income generated from passenger and freight services, as this loan is substantial. He noted that the loan amount borrowed from China Exim Bank is RM37.4 billion, highlighting the magnitude of the debt.

Darwis stated that the primary focus should be on making the operation sustainable, as it is difficult to achieve the revenue needed to start servicing the debts. He argued that the government will generate revenue from economic activities in the East Coast, Klang Valley, and other parts of the country, which should be used to pay off the debt.

When asked about the annual interest payment for the RM37.4 billion loan from China Exim Bank, Darwis calculated the amount to be RM3.7 billion starting from 2027. He reiterated that this project is about the economic spillover benefits that will generate income for the government. However, he highlighted that the return on investment, in terms of the original RM52 billion investment, is unlikely to be recouped within the next 30 to 50 years.