“I do not know what they want to investigate. The contract has not even been signed.

“There is nothing for them to investigate because this project is still at the conceptual stage,” Loke told a press conference after an event at Zenith Hotel here today.

The leasing arrangement, which was reported to involve the transport ministry, economy ministry, Railway Assets Corporation, and Keretapi Tanah Melayu Bhd (KTMB), was flagged for review by PAC chairman Mas Ermieyati Samsudin.

Mas Ermieyati last week said that the train deal was one of five projects the PAC would be probing starting February next year.

In August, Loke said Malaysia would enter into the RM10.7 billion leasing agreement with China to acquire an additional 62 passenger trains for KTMB.

Malaysia, China to jointly operate and maintain ECRL

In his speech, Loke said Malaysia and China established a joint operating company (OpCo), with both parties holding an equal 50:50 stake, to oversee the operation and maintenance of the East Coast Rail Link (ECRL) project.

He said this will allow Malaysia Rail Link Sdn Bhd (MRL) and China Communications Constructions ECRL Sdn Bhd (CCCECRL) to share ECRL’s operating costs and exchange technical knowledge.

“MRL and CCCECRL will each bear 50% of the risk in the operating company if ECRL operates with a deficit.

“MRL will fully own ECRL’s assets on behalf of the Malaysian government throughout the operational phase of ECRL, ensuring that national interests are protected at all times and enabling local empowerment in this national infrastructure,” he said.

On the possibility of linking the train to Thailand, Loke expressed hope for future connectivity.

“(The rail) already reaches Kota Bharu, so it’s just 20km away from the Malaysia-Thailand border in Rantau Panjang,” he said.

“Of course, this will have to be worked out with the Thailand government.”