PUTRAJAYA is hopeful that East Coast Rail Link negotiations with Chinese contractors will wrap up next month, said Lim Guan Eng.

The finance minister said he is encouraged by Prime Minister Dr Mahathir Mohamad’s comments last week, that Malaysia will continue with the ECRL project with China if construction costs are reduced considerably.

“I would like to take this opportunity to express my support for the prime minister’s statement that reductions in the price of the project are necessary for us to come to an agreement on continuing with the project,” he told reporters in Kuala Lumpur today.

“I think the prime minister mentioned that because, due to the inflated price, we cannot afford the project. I think the Chinese government has offered reductions, and we are hopeful that these discussions will enable us to come to a settlement.

“We hope that these discussions can be carried out quickly, hopefully in time for the prime minister’s visit to China at the end of April.

“We have to come to some sort of conclusion. As you all know, we cannot go on and on as far as these discussions are concerned. With these reductions, it is hoped that the project can be moved forward. We are hopeful for a positive outcome from these discussions.”

Dr Mahathir had said it would take Malaysia 30 years to settle the loan if the ECRL price tag remained RM55 billion.

“We will be saddled with a lot of interest, which, in the end, will amount to RM140 billion.

“If the price is right, we will continue, but at the moment, we have not agreed on the price.”

Dr Mahathir last visited China in August 2018, meeting Chinese President Xi Jinping and Prime Minister Li Keqiang.

His visit next month will focus China’s One Belt, One Road initiative, which aims to improve connectivity between Asia, Africa and Europe. – March 7, 2019.