JBIC EXTENDS BUYER'S CREDIT TO MALAYSIA (Loan for the Electrified Double Track Project by the Government of Malaysia)
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed on November 3, 2000, a loan agreement totaling some 39.7 billion yen with the Government of Malaysia. The loan is co-financed with The Sakura Bank Ltd., The Sanwa Bank, Ltd., Sumitomo Bank Ltd. and The Bank of Tokyo-Mitsubishi, Ltd. with JBIC assuming some 23.8 billion yen, or 60% of the total amount. The proceeds of the loan will be used to procure a complete system for electrification of railroads from Japan for the Electrified Double Track Project being implemented by the Government of Malaysia. Suppliers will be Japanese exporters and manufacturers including Mitsui Co., Ltd., Nippon Steel Corp., and NKK Corp.
2. The objectives of the project are to double track and electrify about 175km of railroad between Rawang and Ipoh (the nation's 4th largest industrial city in the northern region) near Kuala Lumpur, the area with the heaviest traffic in Malaysia. Modern signal and communication systems will also be installed to improve the railway's transport efficiency, safety and competitiveness.
3. The project is being implemented under the "Vision 2020"initiative by which the Malaysian government aims to create a developed industrial nation by 2020. The initiative includes a modernization program for the main line of Keretapi Tanah Melayu Berhad (KTMB) (Malayan Railway). Presently, the main line is a single, non-electrified line extending the 780km length of the west coast of Malaysia, from Singapore to Kuala Lumpur and to the northern commercial city of Butterworth. This is the second project following the Malaya National Railway Improvement Project for which JBIC extended an ODA loan, signed in March 1993. This project was implemented to double track and electrify about 105km between Seremban (south of Kuala Lumpur) and Rawang (north of Kuala Lumpur), and about 43km between Kuala Lumpur and Port Klang (west of Kuala Lumpur).
4. This loan will promote export from Japan to Malaysia, and at the same time support the Malaysian government's efforts to become a developed industrial nation, thereby providing significant support for the country's efforts to promote economic development.