In major infrastructure project where private entities are roped, the government approach of lending money is unacceptable. In the case of the WCESB, the government is offering a loan of RM2.24 billion at 4% interest p.a. and will pay the 3% of the commercial bank interest on the loan that WCESB would take from the commercial banks for a period of 22 years. The estimated loan amount would be RM7.07bill-RM2.24bill =RM4.83bill. The interest amount for the period of 22 years would be RM1.84bill with the assumption that the annual repayment amount of RM303.07 mill. This would mean effectively the government is funding a total of RM4.08bill out of the RM7.07bill which is equivalent of 58% of the total project cost.