CONFUSION continues to reign over the future of the East Coast Rail Link (ECRL) after two senior government ministers appeared to be at odds with each other on the fate of the China-backed mega project.

Earlier today, Economic Affairs Minister Azmin Ali announced that the cabinet had decided on Thursday to cancel the multi-billion dollar project, citing the RM500 million annual interest payments as the main reason for the decision.

However, a few hours later, Finance Minister Lim Guan Eng told reporters that he was shocked at Azmin’s announcement, adding the minister may not have been updated on Prime Minister Dr Mahathir Mohamad’s decision.

“Azmin was not in the last cabinet meeting,” Lim reportedly said.

“I am acting under the instruction of Tun (Dr Mahathir) and the cabinet,” he said.

Lim’s comments have cast uncertainty over the fate of the RM81 billion ECRL project, which was awarded to China Communications Construction Co Ltd (CCCC) by the previous Barisan Nasional administration.

He then clarified his statement on Azmin’s attendance at the cabinet meeting by saying:

“Sorry, I wouldn’t say that Azmin wasn’t in the cabinet meeting.

“What I meant is that he wasn’t privy to the decision made by Tun.

“Anyway a statement will be issued subject to the instruction by Tun,” he was quoted as saying.

On Thursday, Dr Mahathir told reporters he was unaware of the status of the project and would discuss the issue with the cabinet.

Earlier this week, Council of Eminent Persons chairman Daim Zainuddinhad said the ECRL might continue, as Malaysia is still negotiating with China over the project.

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.

The previous administration had inked a procurement, construction and commissioning (EPCC) contract to CCCC to develop the railway line which would have connected Port Klang in Selangor to Kelantan’s Pengkalan Kubor.

Azmin had also told reporters today that the government would not have been able to bear the financial burden of the project, adding that the Finance Ministry would decide on the compensation to CCCC. – January 26, 2019.