DR Mahathir Mohamad will visit China next month to renegotiate some of the nation’s more contentious projects in Malaysia, such as the East Coast Railway Line (ECRL).  

The prime minister said he initially wanted to visit China this month but Chinese President Xi Jinping was not free.   

“I wanted to go to China as early as possible but the president was not available. I will head there in August,” Dr Mahathir said at a press conference in Putrajaya today. 

The 93-year-old said on his trip, he would renegotiate deals the previous Barisan Nasional administration had made that he had said were unfair and lopsided.

He said the project of most pressing concern was the 688km Kuala Lumpur-Kelantan ECRL, which the Finance Ministry estimated could ultimately cost Malaysia RM80 billion.

“There are several issues to be brought up, among which is the unfairness of the terms of the contract, as well as the loan.

“The interest (of the loan) is also of concern to us,” he said, adding that the rate for government loans was usually 3% and below but the rate from the China bank for the ECRL was much higher.

Meanwhile, Dr Mahathir said Council of Eminent Persons chairman Daim Zainuddin will also be heading to China, but before him. 

“I think he wants to talk to the Chinese about some contracts, perhaps. That is my guess because he is free to do what he likes,” he said. 

However, Dr Mahathir said the decision whether to take the former finance minister’s advice ultimately rested with him. 

“Whatever advice he (Daim) wants to give, he can give it to me and I can choose to reject his advice,” Dr Mahathir said. 

Putrajaya had recently suspended the ECRL project following reports that its final cost stood at RM80.92 billion, an almost 80% hike from its original projected cost of RM46 billion.

The government will also send a delegation to Beijing later this month to renegotiate the ECRL contract and two gas pipeline projects under Suria Strategic Energy Resources Sdn Bhd (SSER).

SSER, which was set up in May 2016 to undertake the Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP) projects, paid RM4.71 billion and RM3.54 billion to China Petroleum Pipeline Bureau in November the same year despite work only reaching 13% completion.

The Finance Ministry lodged a report last month with the Malaysian Anti-Corruption Commission over the RM9.4 billion payout. – July 6, 2018.