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GEORGE TOWN: Chief Minister Chow Kon Yeow said today that it is “regrettable” that Putrajaya does not want to guarantee a RM2 billion loan from a foreign bank for Bayan Lepas’ proposed light rail transport (LRT) project.
He said this was despite Putrajaya agreeing to guarantee the issuance of bonds by the state to finance the recovery of the Penang South Islands (PSI) project last October.
This comes after Putrajaya said it would not guarantee a RM2 billion loan offered by the Asian Development Bank (ADB), citing increased commitments.
In a statement today, Chow said the state government would not give up on the LRT project and would consider other financing options.
Meanwhile, he said, Penang would continue to remind Putrajaya that the state had reached the top in terms of foreign direct investment approved this year despite the Covid-19 pandemic.
He said this has significantly boosted the country’s economy, creating thousands of jobs in the northern region.
“We will continue to boost Putrajaya’s confidence to give Penang priority and fair treatment in financing the LRT project,” he said.
Construction of the 30km Bayan Lepas LRT line, which will have 19 stations, is expected to take off after the transport ministry approves it this month. It will cost RM8.5 billion.
Finance Minister Tengku Zafrul Aziz told Parliament yesterday that the ADB had given the federal government three options in January.
It was a direct loan to Penang with guarantees from the federal government; a direct loan to the federal government with repayment to Penang; or a direct loan to a special purpose vehicle with a guarantee from the federal government.
