MRL CONFIRMS ECRL PARTNERSHIP PLANS WITH CCCC REMAIN UNCHANGED

KUALA LUMPUR, July 12 (Bernama) -- Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Co Ltd (CCCC) will jointly share the costs for the East Coast Rail Link’s (ECRL) operations as well as exchange technical know-how and expertise as agreed upon previously.

In a statement today, MRL reiterated that the post-construction partnership plans with CCCC remain “as per the signing of the memorandum of understanding (MoU) for ECRL’s management, operation, and maintenance phase back in April 2019.”

“The plan is consistent with the recent statement made by the Transport Minister Loke Siew Fook during Parliament’s special chamber,” the statement said.

MRL is the project owner of the ECRL and CCCC is the engineering, procurement, construction, and commissioning (EPCC) contractor, the statement said.

“Subsequently, for the operation of ECRL, a new joint-venture company between MRL and CCCC will be established,” MRL said.

A shareholders’ agreement between MRL and CCC for the incorporation of a joint-venture company to assume the role of operator, or operating company (OpCo), will be finalised this year.

“MRL and CCCC will each bear 50 per cent of the risk in the OpCo if the ECRL operates at a deficit, while MRL will receive 80 per cent of the earnings, and CCCC the balance of the 20 per cent, should the ECRL operates at a surplus,” it added.

MRL also said it has been appointed as the ECRL’s asset owner by the government, in line with the April 2019 plans, paving the way for MRL to sign an operation agreement with the OpCo, and enabling the OpCo to access ECRL’s assets for operation and maintenance.

The Malaysian government will own 100 per cent of all ECRL assets via MRL, considering the company is a wholly owned subsidiary of the Minister of Finance (Incorporated) Inc.

Additionally, the statement said the 665-kilometre ECRL project is scheduled for completion from Kota Bharu, Kelantan to the Gombak Integrated Terminal, Selangor in December 2026. It will be operational in January 2027.

Its full completion, involving rail extension from Gombak to Port Klang, is expected in December 2027.

-- BERNAMA