GEORGE TOWN (July 25): The proposal for the RM1 billion soft loan for the Penang Transport Masterplan originated with Southern Reclamation Scheme (SRS) Consortium Sdn Bhd, said Penang Chief Minister Chow Kon Yeow.

The SunDaily reported that the proposed loan was to jump start two components of the Penang Transport Masterplan, namely the George Town to Bayan Lepas Phase One of the Light Rail Transit system (LRT) and the Pan Island Link Phase One highway project.

Chow said that SRS, who is a project delivery partner, and the state would reinstate the previous financial model of reclaiming three islands off Bayan Lepas to underwrite the masterplan, should the proposed financing mode not be feasible. 

Chow said that the state will be writing in formally to the Finance Ministry to seek the soft loan or grant, according to the SunDaily. 

The interest rate for the federal loan is estimated at be at 3% to 4%.