PUTRAJAYA remains committed to improving the transportation network in the east coast of peninsular Malaysia despite the cancellation of the East Coast Railway Line (ECRL) project, said Transport Minister Anthony Loke.

“Although there is no ECRL, we assure the people of the east coast that they will not be neglected. The train and road networks will be improved,” Loke told reporters today.

“We hope the east coast will have a more effective transport network.”

On the final day of his five-day official visit to China, Prime Minister Dr Mahathir Mohamad announced that Putrajaya will be scrapping the ECRL and two gas pipeline projects in Sabah, which are all backed by Chinese companies.

The 688km rail line was supposed to connect Pengkalan Kubor in Kelantan to Port Klang in Selangor, and is a part of China’s ambitious One Belt, One Road geopolitical initiative.

Finance Minister Lim Guan Eng said on July 3 that the ECRL would cost Putrajaya RM81 billion, rather than the earlier RM46 billion touted by the former Barisan Nasional administration.

The Finance Ministry suspended work on the ECRL on July 4 pending a review of the project. Main contractor China Communication Construction Sdn Bhd started to lay off workers the same month.

Lim said in May that Putrajaya has already paid RM20 billion for the ECRL. It was reported that Dr Mahathir had intended to renegotiate the terms for ECRL with Chinese officials during his trip to Beijing.

Project owner Malaysia Rail Link was quoted in The Star today as saying that they were shocked by the announcement, as the company was in talks with the Finance and Transport Ministries as well as the Council of Eminent Persons to lower the project cost.

“The MRL has paid more than RM10 billion to the main contractor, the China Communications and Constructions Company (CCCC), and there is a claim of RM9 billion for work done.

“So it will be quite a waste, because the figure to compensate them is quite high,” a source from MRL told the newspaper.

After coming into power following the May 9 general election, Dr Mahathir announced a review of several mega projects inked by the BN government, citing high costs and the country’s RM1 trillion debt as reasons for the review. – August 22, 2018.