Express Rail Link

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In October 1997, Express Rail Link signed a 30-year BOT contract with the Malaysian government for the construction of a 57km, double track, rail link from Kuala Lumpur Central Station to the new international airport at Sepang. Express Rail Link is a joint venture company comprising the state-owned Tabung Haji Technologies (THT - 40%), the private company YTL Corporation (50%) and Trisilco Equity Sdn Bhd, Malaysia (10%). Siemens AG is the supply contractor under an EPC (engineering, procurement and construction) contract. The project costs are M$2.1 billion (US$ 540 million), with M$500 million coming from equity, M$1.1 billion from private project financing (or export credit agency financing), and M$500 million as soft loans from the Malaysian government. Equity and government loan financing is in place. Express Rail expects to complete construction in 2000, and to start dividend payments in year 2009. The expected rate of return on the project at signing was 13%, although the possibility of traffic shortfalls has caused the company to request an additional 30-year extension (this is under review). A review in March 1999 extended the expected opening date to October 2001 and approved a new financing schedule. An export credit agency financing was expected to close in May 1999. Operations were launched in April 2002 and will carry 10k passengers/day for the first year.