THE new, cheaper East Coast Rail Link (ECRL) line is 40km shorter and includes stops in Negri Sembilan to reduce costs.
 
Speaking to the media in Beijing after signing the re-negotiated deal to resume the project at a lower cost of RM44 billion, special envoy Daim Zainuddin said a main stopover in Gombak had been scrapped.

The new route is through Kota Baru-Mentakab-Jelebu-Kuala Kelawang-Bangi/Kajang-Putrajaya-Pelabuhan Klang.

Finance Minister Lim Guan Eng and Transport Minister Anthony Loke has said last week that the ECRL line could be rerouted to include stops in Negri Sembilan.

On the original plan, the route in Phase 1 was Kota Baru-Kuala Terengganu-Kuantan-Benton-ITT Gombak, and Phase 2 was Gombak North-Serendah-Port Klang and Kota Baru-Pengkalan Kubor.

That China would buy more palm oil from Malaysia was not a part of the negotiations for a deal deal,  said Daim.

He said the talks only touched on the project and nothing else.

Under the new deal, the construction cost of Phases 1 and 2  has been reduced to RM44 billion, a RM21.5 billion reduction from the original RM65.5 billion.

“This new cost is easy for Malaysia to manage, and will reduce the interest that we have to pay,” said Daim.

It was previously reported that part of the terms of a new ECRL deal might include China buying more palm oil from Malaysia and investing in more projects here.

The Star, quoting sources, had said the negotiations included getting a commitment from China to purchase more local palm oil from Malaysia as well as to direct more Chinese investments to Malaysia.

Daim said today Malaysia and China signed an additional agreement to build double tracks for the line but at 40km shorter than the original 688km.

China and Malaysia have agreed on the construction cost of about RM68 million per km, substantially reduced from the original RM98 million per km.

More details on the improved deal will be provided by Prime Minister Dr Mahathir Mohamad on Monday.

The announcement today ends months of uncertainty over the future of the China-backed project.

Dr Mahathir suspended the project shortly after Pakatan Harapan took over the government last May, citing its exorbitant cost and “unfair” terms that his predecessor Najib Razak had signed off on.

Putrajaya had hinted it would cancel the project, but changed its stand when faced with a huge cancellation fee. – April 12, 2019.