Tuesday 19 Mar 2024
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KUALA LUMPUR (Oct 22): The Malaysian government could claim back the RM10.02 billion paid to East Coast Rail Link (ECRL) contractors if the project is terminated, said Finance Minister Lim Guan Eng today.

Speaking at the Dewan Rakyat, Lim also said the Malaysian government has not decided on the final status of the project as negotiations are still ongoing.

"Four sessions of negotiations have been conducted since July 2018.

"Malaysian Rail Link Sdn Bhd (MRL) and China Communications Construction Co (CCCC) have also conducted several technical discussions between July and October to look into suggestions and steps to reduce the costs to complete the ECRL project," said Lim.

"However, until now, MRL and CCCC have not reached any agreement on the suggestions to reduce the costs," he added.

MRL is a body under the Ministry of Finance. The ECRL is not included in the list of high-impact projects under the Mid-term Review of the 11th Malaysia Plan 2016-2020 published on Thursday.

According to the minister, the ECRL project would cost around RM80.92 billion to build, and the country has paid RM19.68 billion comprising RM10.02 billion advanced payment bond and RM9.67 billion for works completed as at Feb 15, 2018.

"It must be stated that the advanced payment bond can be redeemed by MRL if the project is terminated," he added.

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