COMMENT | ERL's new 30-year concession raises concerns over rail projects

COMMENT | Putrajaya’s recent extension of Express Rail Link (ERL) Sdn Bhd’s concession period for transport between the KL city centre and the main airport by another 30 years (until 2059) raises concerns and intrigue.

This comes at a time when the RM100 billion high-speed rail (HSR) link to Singapore, whose cost may balloon to perhaps RM200 billion over the 10-year construction period, is being revived. It throws an extra spotlight on troubled rail projects in Malaysia.

Concerns are raised because ERL is yet another example of how the rail projects, all loss-making or having the potential for huge losses, are being handled in the country.

Further, lengthy extensions are being given without much thought and transparent disclosure of information.

There is intrigue because of the shareholders in ERL. It is 45%-owned by YTL Corp Bhd, followed by Lembaga Tabung Haji’s 36%, SIPP Rail Sdn Bhd’s 10%, and 9% by Trisilco Equity Sdn Bhd. SIPP has been linked with...