RM10.02 BILLION OF ADVANCE PAYMENT FOR ECRL CAN BE REDEEMED - LIM GUAN ENG

KUALA LUMPUR, Oct 22 (Bernama) -- The government is expected to be able to redeem the RM10.02 billion advance payment paid to China Communications Construction Ltd (CCCC) if the East Coast Rail Link (ECRL) infrastructure project is cancelled, the Dewan Rakyat was told.

Finance Minister Lim Guan Eng said as at Feb 15, Malaysia Rail Link Sdn Bhd (MRL) as the project owner had paid over RM19.6 billion to CCCC, which is the main contractor of the project.

He said the amount consisted of advance payment of RM10.02 billion and progress payment of RM9.67 billion. 

“It should be noted that an advance bond can be redeemed by MRL if the project is terminated.

“In other words, if the worst case scenario should arise, the government can recover RM10.02 billion,” he said in reply to Tan Sri Noh Omar (BN-Tanjung Karang) during question time.

Lim also told the Dewan Rakyat that the decision whether the ECRL project would proceed or be cancelled had yet to be finalised as negotiations between the parties involved were still ongoing.

He said the Selangor government had protested against the project as the proposed rail link from Gombak to Port Klang would affect its chances to obtain the UNESCO’s heritage site for the ​​16-km long ​​​​​Klang Gate Quartz Ridge, which is the longest quartz ridge in the world.

The finance minister said all work pertaining to the ECRL project had been suspended since July 3 pending a new decision.

He said four sessions of consultations had been held between Malaysia and China so far, particularly on the direction of ECRL, while the MRL and CCCC had also held several technical sessions to reduce the cost of the project which was estimated at RM80.92 billion.

“The government has yet to make any decision on that. I hope the honourable MP can understand that the cost is very high. Apart from the RM80.92 billion, the government also has to take into account interest payable for the project, and also the cost of management which could reach RM1 billion every year,” he added.

-- BERNAMA