PETALING JAYA: The World Bank's blacklisting of the China Communications Construction Company (CCCC) has no bearing on Malaysia awarding it the East Coast Rail Link (ECRL) contract, said Datuk Seri Abdul Rahman Dahlan.
The Minister in the Prime Minister's Department said this is because the project is not a road or a bridge project, adding that the ECRL is not funded by the World Bank.
"Therefore the World Bank sanction does not apply to CCCC's participation in the ECRL project," Abdul Rahman said in a statement on Saturday.
Abdul Rahman was responding to reports that quoted his Dewan Negara answer on the matter, where he denied that CCCC was blacklisted by the World Bank.
He added in his statement that the CCCC Group of Companies have proven to be capable in carrying out mega projects in Malaysia, such as the Sultan Abdul Halim Muadzam Shah Bridge in Penang which was completed in 2014.
"Recently, CCCC was also awarded a RM2 billion reclamation project by a joint-venture company of the Penang State Government," he said.
He clarified that CCCC was formed from a merger between several companies including a company named the China Road and Bridge Company (CRBC).
Abdul Rahman also said that the majority owner of CCCC is the government of the People's Republic of China.
"CRBC was unilaterally adjudged by the World Bank to have irregularities in a past road construction project in a neighbouring country. As a result, the World Bank had barred CRBC from engaging in any road or bridge projects financed by the World Bank," he said.
Abdul Rahman said that a 2011 change to the World Bank sanctions system required successor organizations – through purchase or reorganization – to be subject to the same sanctions applied to the original firm.
"The successor company - CCCC - was also made ineligible to engage in any road and bridge projects financed by the World Bank Group," added Abdul Rahman.
He said that the sanction will end on Jan 12 next year.