Kuala Lumpur, Malaysia October 31 2016 – Chinese state companies will build a 620 kilometre rail line that will span the length of the east coast of peninsular Malaysia.
The deal is expected to be finalised this week with China Communications Construction being awarded the construction contract. At the same time the Export-Import Bank of China and Malaysia will agree terms on financing the $13 billion project.
Mohd Irwan, Malaysia’s treasury secretary-general, said the decision to seek financing from China was due to the favourable terms offered.
“If you borrow in the international market you will not get the low interest rate that we will get. We haven’t finalised (the details) but we will get very competitive (rate) and the repayment period we expect to be 20 years.”