MALAYSIAN project delivery partners (PDP) for the Kuala Lumpur-Singapore High-Speed Rail (HSR) project will not be reimbursed despite deferment of the project, said MyHSR Corporation Sdn Bhd.

“We don’t expect any reimbursement but they will have to understand the situation we are in, plus the future project is still on track for resumption and there will be other opportunities to participate again,” MyHSR chief executive officer Nur Ismal Mohamed Kamal told Channel News Asia in Putrajaya.

MyHSR CEO Mohd Nur Ismal welcomes the deferment, it’s fantastic news he said as opposed to it being scrapped . The intl tender process for AssetCo to build & operate train and tracks that’s now been terminated, will restart once project resumes in 2020 . pic.twitter.com/pl1Oj5YDtK

— Melissa Goh (@MelGohCNA) September 5, 2018

Earlier in Putrajaya, Malaysia and Singapore had signed the HSR Bilateral Agreement to defer construction of the 350km rail project linking Kuala Lumpur to Singapore to May 31, 2020.

The agreement, signed by Economic Affairs Minister Azmin Ali and Singaporean Transport Minister Khaw Boon Wan, also saw Malaysia agree to compensate the island republic S$15 million (RM45 million) for “abortive” costs.

The abortive costs were due to works already done or built-in conditions for Singapore contractors.

In April, MyHSR had announced that four local companies had been appointed as PDPs for the project. 

The project had been set to be carried out by joint ventures between Malaysian Resources Corporation Bhd and Gamuda Bhd (MRCB-Gamuda), and YTL Corporation Bhd and Tabung Haji (YTL-TH).

The value of the MRCB-Gamuda JV was reported as between RM20 and RM23 billion, while the YTL-TH portion was reported to be between RM10 and RM12 billion for seven stations. 

Meanwhile, Nur Ismal said MyHSR was relieved that the project was only delayed and not cancelled. 

“We are very encouraged by this announcement, considering Malaysia’s financial situation. The deferment of slightly less than two years is fantastic news as opposed to a cancellation, even though commencement of services will be slightly delayed. 

“But on the international bidding that is going on right now, we are also going to make an announcement that process will be cancelled. We will restart the process after the resumption of the project in May 2020,” said Nur Ismal.

Malaysia, under the new Pakatan Harapan government, had initially wanted to cancel the project as the country “could not afford it due to its RM1 trillion debt”, as said by Prime Minister Dr Mahathir Mohamad and echoed by other leaders. – September 5, 2018.