Thursday 28 Mar 2024
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KUALA LUMPUR (July 30): The government has yet to decide on whether to proceed with or cancel the East Coast Rail Link (ECRL) project, according to the Ministry of Finance (MoF).

"If the government intends to pursue this project, a thorough study should be carried out in terms of scope, specifications and implementation methods so that the overall cost of the project can be reduced.

"(However), if the government intends to terminate the project, it will likely refer to legal procedures to determine the amount of compensation that has to be paid," MoF said in a written reply dated July 25 to Kota Bharu MP Datuk Takiyuddin Hassan that was released to the media today.

The ministry said representatives from Malaysia Rail Link Sdn Bhd (MRL), a wholly-owned unit of the Minister of Finance Inc, have been sent to China to renegotiate the implementation of the project on July 17 and July 18. 

Prior to that, MRL had instructed its main contractor China Communications Construction Ltd (CCCC) on July 3 to suspend all works under the engineering, procurement, construction and commissioning contract (EPCC) of the project.

The ministry's answer was in response to Takiyuddin's question on the outcome of the government's negotiation with China on the ECRL project.

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