THE East Coast Rail Link project may recommence only after a report by the companies involved is finalised and presented to the Malaysian and Chinese governments.

Chinese ambassador to Malaysia Bai Tian said both governments have been “talking to each other” over the continuation of the project. 

“However, we leave the negotiations to the contractor and the project owner,” he said after a tour of China Railway Rolling Stock Corporation’s assembly plant in Batu Gajah, Perak. CRRC is not involved in the ECRL project. 

Present were Transport Minister Anthony Loke and CRRC president Fu Chengjun.

“We are still waiting for the report from the two parties,” Bai said.

“We hope by mutual respect and goodwill and the spirit of mutual benefit and equal footing, the two businesses will come up with a win-win result.”

Yesterday, Prime Minister Dr Mahathir Mohamad said the ECRL project, which was suspended in July, can be carried out on a smaller scale if China agrees to it.

“What we are trying to do is to ensure that we will not spend much money while China will not suffer a loss,” Dr Mahathir was quoted as saying by Sin Chew Daily.

Bai said he does not have the time frame for the project but expects it to benefit Malaysians.

“I hope it will come out soon,” he said. 

Launched by the previous Najib Razak government in 2017, the ECRL is a 688.3km double-track rail line planned to be commissioned in 2024.

It would connect Pengkalan Kubor in Kelantan on the east coast of the peninsula with Port Klang in Selangor on the west coast.

Malaysia, via its subsidiary Malaysia Rail Link Sdn Bhd (MRL), paid Chinese contractor China Communication Construction Company (CCCC) RM19.68 billion for the mega project. A total of RM10.02 billion is as advanced payment, while RM9.67 billion is for progress payment.

After taking power last May, Pakatan Harapan said it would review all mega-projects by the previous government and issued a suspension notice to CCCC on July 3.

The construction cost of this project was initially reported to be RM66.8 billion. 

The PH government reviewed the project after estimating it will cost RM81 billion after taking into account land acquisition, interests, fees and other operational costs. – January 3, 2019.