PM: Revised ECRL deal raises local role to 40% of works

The revised East Coast Rail Link (ECRL) will see Malaysian contractors having a 40% participation in the RM44bil project, says Tun Dr Mahathir Mohamad.

KUALA LUMPUR: The revised East Coast Rail Link (ECRL) will see Malaysian contractors having a 40% participation in the RM44bil project, says Tun Dr Mahathir Mohamad.

The ECRL project would be jointly managed by Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Company Ltd (CCCC).  Work was expected to resume in May.

News reports quoted the Prime Minister as saying on Monday that Malaysia was in talks for a palm oil purchase deal with China.

Malaysia was also in talks to reduce the ECRL loan from Exim Bank.

The revised ECRL deal reduced the project cost by RM21.5bil to RM44bil from RM65.5bil previously. It would also involve a new alignment for the ECRL. 

Besides reduced cost, the new alignment from Kota Baru-Mentak-Jelebu-Kuala Kelawang-Bangi/Kajang-Putrajaya and on to Port Klang will also see a reduced distance to 648km from the original 688km.

CCCC has agreed to refund part of the RM3.1bil advance payment for the ECRL Phase 2, Double Tracking and the Northern Extension under the original contract.

“RM500 million will be refunded within a week from  April 12,  2019 and a further RM500 million within a month from this date for a total of RM1bil,” he said at a press conference in Putrajaya.
 
The balance will be settled within three months after deductions for verified claims due to abortive works, suspension and cancellation of the northern extension.

MRL and CCCC had signed a supplementary agreement on April 12.

The supplementary agreement covers Phase One and Phase Two of the Engineering, Procurement, Construction  and  Commissioning (EPCC) of the ECRL at a reduced cost of RM44bil.