KUALA LUMPUR (March 30): Opposition parliamentarian Tony Pua has claimed that Malaysia now appears to be so desperate for foreign financing towards its East Coast Rail Link (ECRL) project that it is willing to subject itself a foreign power's terms and conditions.

ECRL, which is termed as a national interest project, has been signed with China Communications Construction Co Ltd (CCCC) and the project financier is China Exim Bank for a cost of RM55 billion.

Pua said in today press conference at the Parliament's Media Centre, "Just because somebody is willing to lend you the money at seemingly favourable terms does not mean that you should accept the condition to select [a] product that will cost nearly double the estimated price."

He said the worst part now was when the real cost of funds for the project is opaque, and local companies and contractors will be only be involved in 30% of the project.

"We do not know the real cost of the project as it was awarded without any open and competitive tender.

"We now have many companies who have built double tracking railway projects and yet the government is awarding a standard rail link project at substantially higher cost to (a) foreign company with minimal local participation," he said.

As reported earlier, Pakatan Harapan lawmakers had also exposed the existence of an extensive feasibility study by HSS Engineers Bhd, which had estimated the cost of the project to be less than RM30 billion.

"Therefore to pay for the project at RM55 billion just because China Exim Bank offered an 'attractive financing package' is absolutely scandalous," he said.

Last week Pua queried the Finance Minister to justify the award of the RM55 billion ECRL project to CCCC and why Malaysian companies were not given the opportunity to tender for the project

"To qualify for this financing offered by China Exim Bank, the project has to be executed by CCCC," said Finance Minister in a written response dated March 21 to MP Petaling Jaya Utara Pua.

China Exim Bank has offered a soft loan to Malaysia for the project at low interest rates and a period of 20 years coupled with a grace period of seven years in which government does not need to repay the principal.