MALAYSIA: The state of Penang is to continue developing plans for a light rail project despite the national finance ministry’s recent rejection an application for loans and guarantees worth 2bn ringgits.
Envisaged as part of a broad transport infrastructure development programme for the state, the proposed line would run 29∙9 km from Komtar to Penang International Airport with 27 stations.
‘The state government is continuing to carry out the LRT project as the Penang government has several other financial options to fund projects under the Penang Transport Master Plan’, Chief Minister Chow Kon Yeow said.
He added that the project was very important for the development of the local economy, and the state would continue to encourage the national government to help with the funding.
Chow referred to a long history of negotiations, including a letter from former Prime Minister Tun Dr Mahathir Mohamad saying that bonds being issued by Penang state to fund the project would be guaranteed.
However, the national government is now more cautious, arguing that the letter is not legally binding.
