PRIME Minister Dr Mahathir Mohamad said today he is not aware if a contract awarded to a China contractor for the East Coast Rail Link (ECRL) project has been terminated.

“I don’t know if the contractor has had the contract terminated or not. But one of the ways to handle the matter is by terminating the contract but we have to pay billions in compensation.

“We will discuss about it today in the cabinet meeting. I just came back from my foreign working trip,” he told reporters after attending a function in Putrajaya.

A few days ago, The Edge Markets quoting unnamed government sources, published a report stating that Putrajaya has terminated the engineering, procurement, construction and commissioning (EPCC) contract awarded to China Communications Construction Co Ltd (CCCC).

The Edge added that Finance Minister Lim Guan Eng on July 3 last year ordered a stop to all construction works and services in the RM81 billion project, pending a review.

However, Council of Eminent Persons chairman Daim Zainuddin, one of Dr Mahathir’s confidants, said the ECRL might continue, as Malaysia is still negotiating with China over the project.

The former finance minister added that both parties hoped to conclude discussions quickly.

The government adviser was appointed as a special envoy to meet China’s Prime Minister Li Keqiang and other government officials in Beijing last year.

Lim, who was with Dr Mahathir in Putrajaya today, refused to comment on the matter. – January 24, 2019.