Malaysia secures 800 mln usd loan from China for second Penang bridge - report
07.13.07, 1:35 AM ET
KUALA LUMPUR (Thomson Financial) - Malaysia secured Friday a 800 million US dollar loan facility from the Exim Bank of China, a move that paves the way for the construction of the second Penang bridge in northern Malaysia, government news agency Bernama reported.
The report said the loan is the largest given by China for a single project in a foreign country and reflects the close bilateral ties between Malaysia and China.
The term of the loan agreement which included an interest rate of 3 percent over 20 years is the most favourable offered to a foreign country, it added.
The signing, between Exim Bank of China and Malaysia's development bank, Bank Pembangunan Malaysia, was witnessed by Second Finance Minister Nor Mohamed Yakcop.
The 23-kilometre long bridge, linking Batu Maung on Penang island to Batu Kawan on the mainland, is expected to be completed in 2011.
The second Penang bridge will be the longest crossing in Southeast Asia, according to the Bernama report.
(1 US dollar = 3.44 ringgit)
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