THE government is still negotiating the East Coast Rail Link project despite China’s big offer to cut on costs, said Dr Mahathir Mohamad.

The prime minister said he cannot reveal anything concrete as discussions are ongoing.

“The status of the project is, it is under negotiation,” he told a press conference in Putrajaya today.

“I cannot say anything because I have to wait for the result. I hope it can be reached as soon as possible.”

It was widely reported that China has offered to nearly halve the cost of ECRL in a bid to save the centrepiece of its infrastructure push in Southeast Asia.

Reuters, quoting sources, said contractor China Communications Construction Co Ltd has offered to cut the 688km rail line’s RM67 billion construction costs by as much as half.

On Tuesday, Dr Mahathir said Putrajaya has yet to make a final decision on ECRL.

“No final decision has been made. Not off yet. Not called off, no final decision yet,” he told reporters after a Bersatu supreme council meeting.

He said Malaysia and China will come up with a solution.

“Both sides will come up with a solution, and (Finance Minister) Lim Guan Eng will make the announcement when he has completed his negotiations.”

Dr Mahathir earlier said Putrajaya is not out to frustrate China or renege on contracts.

“We are burdened by very heavy debts, and have to cut back on expenditure incurred by the previous government.

“It is not that we don’t want to honour our contracts, but we just cannot pay. This contract may cost us more than RM100 billion and will impoverish us.

“As such, we seek the understanding of the parties concerned.

“We don’t want to… throw out the contract, but we are really tight in terms of finances.”

Over the weekend, Economic Affairs Minister Mohamed Azmin Ali and Lim made contradictory statements on ECRL.

Azmin had said the project was cancelled because Malaysia could not afford its RM500 million annual interests.

Lim then expressed shock at Azmin’s announcement, saying the latter was not present at the last cabinet meeting. – February 1, 2019.