Second Penang bridge loan deal

PUTRAJAYA: Malaysia and China inked a RM2.7bil (US$800mil) loan agreement Friday to pave the way for the construction of the second Penang bridge.
The loan obtained by Malaysia is the largest given by China for a single project in a foreign country so far, reflecting the close bilateral ties enjoyed by both countries.
The terms of the agreement, which include an interest rate of three per cent per annum over 20 years is the most favourable offered to a foreign country.
Upon its completion in 2011, the 23 km bridge, 17km on water, would be the longest such link in South East Asia.
Second Finance Minister Tan Sri Nor Mohamed Yakcop said many countries were hoping to “build bridges (relationship) with the rising China. With this project, we are literally building a bridge with China. "
“The second Penang bridge, a signature project for the Ninth Malaysia Plan will be a major catalyst for economic growth and investment in the northern corridor.
“The Government is committed to see this project implemented on a fast track and have the bridge opened for use in 2011,” he told a press conference after witnessing the signing of the general loan agreement to finance the construction of the second Penang bridge.
Treasury secretary-general Datuk Dr Wan Abdul Aziz Wan Abdullah signed on behalf of the Government. China's Exim Bank deputy general-manager Xin Bin represented China while Bank Pembangunan's signatory was Datuk Abdul Rahim Mohd Zin.
A contract agreement was also signed between UEM Group Bhd and JV Consortium of China Harbour Engineering Company (CHEC) and UEM Consortium. Signing on behalf of UEM was its managing director and chief executive officer of UEM World Datuk Ahmad Pardas Senin and president of CHEC Ltd Chen Fen Jian.
Also present to at the event were Chinese Minister of Commerce Bo Xi Lai, Penang Chief Minister Tan Sri Koh Tsu Koon and Chinese Ambassador to Malaysia Cheng Yong Hua.