Suspension lifted, ECRL work to start as early as next month
Work on the East Coast Rail Link (ECRL) could start as early as next month, according to Darwis Abdul Razak, the CEO of project owner Malaysia Rail Link Sdn Bhd (MRL).
"We expect the construction to commence as soon as possible, subject to the approval of relevant authorities. We are looking at starting as early as May," he told a press conference in Putrajaya today...
Work on the East Coast Rail Link (ECRL) could start as early as next month, according to Darwis Abdul Razak, the CEO of project owner Malaysia Rail Link Sdn Bhd (MRL).
"We expect the construction to commence as soon as possible, subject to the approval of relevant authorities. We are looking at starting as early as May," he told a press conference in Putrajaya today.
Darwis said the suspension imposed on the ECRL project in July last year was lifted as soon as MRL inked a supplementary agreement with the China Communications Construction Company Ltd (CCCC) in Beijing last week.
Darwis was with Prime Minister Dr Mahathir Mohamad, who divulged further information regarding the new agreement, which reduced the cost to RM44 billion from the initial RM65.5 billion.
According to the premier, the ECRL's new completion date would extend to December 2026 instead of June 2024.
MRL-CCCC joint venture
Mahathir also pointed out that under the new agreement, CCCC would also involved in the operation and maintenance of the ECRL, as opposed to just the construction process.
The supplementary agreement, he added, also allows MRL to be involved in the construction of the project as well.
A joint venture company will be set up for this purpose, with MRL and CCCC having an equal share.
According to Darwis, CCCC would share the burden in the event the joint venture suffers losses, whereas MRL would take 80 percent of profit if it proves successful.
Darwis also said a representative of China's Exim Bank will be in Malaysia to work out the loan negotiation with MRL, following the RM21.5 billion reduction of the construction cost.
MRL is looking at the same loan structure – with 85 percent of funds coming from Exim Bank, and the rest from a local bank. The company is also looking at a similar loan interest rate of 3.25 percent.
Darwis did not provide a direct answer, however, when asked if Mahathir stood by his previous remark that the ECRL would cause Malaysia to fall in China's debt trap.
He only noted that the reduction of the project cost was reached via negotiation, and that he suspected the initial RM65.5 billion price tag was inflated to repay 1MDB's debts.
Mahathir, meanwhile, appeared to be in doubt when asked if the April 12 ECRL agreement was a 'win-win' deal.
"I wouldn't be able to answer that," he said.
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