PARLIAMENT | Finance Minister Lim Guan Eng said today Malaysia Rail Link (MRL) Bhd could claim back RM10.02 billion from the contractors of the suspended East Coast Rail Line (ECRL) if the government makes a final decision to scrap the project.

Lim (Harapan-Bagan) said the figure represented advance payments made by MRL to contractors China Communications Construction Company Ltd (CCCC). 

“I would like to highlight that the advance payment of RM10.02 billion can be reclaimed by MRL if the project is cancelled.

“So in the worst case scenario, MRL can recoup RM10.02 billion from the total RM19.68 billion paid (to CCCC) so far,” the minister said during question time in response to Noh Omar (BN-Tanjong Karang).

Lim added that the remaining RM9.67 billion was paid for project advancements up to Feb 15 this year.

Noh had asked about the latest progress on discussions with Beijing on the suspended ECRL project, and the sum spent so far by the project developer.

On bilateral talks, Lim said that four meetings have been held since the suspension order on July 3.

Apart from MRL, he added that these meetings with CCCC and other China agencies also involved representatives from relevant ministries, as well as the Attorney-General’s Chambers and the Council of Eminent Persons.

“Following that (the four meetings), MRL and CCCC also held several technical discussion sessions between July and October, to fine-tune proposals made on potential overall cost reduction.

“However, until today, MRL and CCCC have yet to come up with an agreement on cost-cutting measures for the ECRL project.

“At the same time, details of the discussions must be kept a secret until the discussions are completed and an agreement has been reached between both parties,” he said.