ECRL's project owner denies claims of Jho Low links

MRL Planning Head Mohd Nizam Daut (centre) giving a briefing at a ECRL project site in Kelantan in late March. - Bernama

PETALING JAYA: The Malaysia Rail Link Sdn Bhd (MRL) has denied allegations that its main contractor for the East Coast Rail Link (ECRL) project, had been required to purchase two construction companies linked with Jho Low.

MRL was responding to a report by The Edge weekly, which claimed that ECRL’s main contractor, China Communications Construction Company Ltd (CCCC), had been required in the ECRL contract to buy 70% of Putrajaya Perdana Berhad for US$244mil (RM974mil) and 90% of family-owned construction company Loh & Loh for US$71mil (RM283mil).

Both companies are said to be linked to controversial businessman Low Taek Jho, better known as Jho Low.

In a statement issued on Sunday (June 10), MRL had dismissed the allegations as incorrect, baseless, misleading and irresponsible.

“There is no contract between CCCC and MRL that stipulates this clause. Neither does this clause appear in the loan agreement between MRL and the Export-Import Bank of China.”

As the owner of the 688km ECRL project, MRL said such allegations could potentially undermine its reputation and its relationship with CCCC.

“As such, MRL urges the media to engage with its Corporate Communications Department to verify information with regards to the ECRL project.”

Meanwhile, MRL said that the ECRL is up to 14.33% of overall progress in its construction.

This includes the setting up of base and satellite camps in all eight sections of the project, land acquisition, site clearing and construction of road access.

It said that multiple access to many of ECRL’s project sites have been constructed at states located in the East Coast.

This includes roads totalling some 95km in length and temporary bridges spanning 1,067 meters.

Up to date, MRL said construction works for seven tunnels in various parts of the ECRL’s rail route in Pahang and Terengganu have commenced.

”The ECRL is progressing slightly ahead schedule and is on track for completion and operation by mid-2024.”

At the same time, MRL added that preparatory works for the 16.3km Genting tunnel, which is dubbed as Southeast Asia’s longest rail tunnel, is already in progress.

“The Tunnel Boring Machines (TBMs) for the twin-bore Genting tunnel are expected to arrive this November to facilitate tunnelling works between Bentong and Gombak.,” said MRL.

“We trust the Federal government will soon make an informed decision on the best course of action regarding the ECRL project.

“Meanwhile, we continue to provide information to the Federal government in their review of the project," MRL added.

At present, the newly elected Pakatan Harapan government led by Prime Minister Tun Dr Mahathir Mohamad, is looking to renegotiate or cancel the ECRL project.

Dr Mahathir previously said that the ECRL project is deemed to be too costly for the country, adding that it also included unfavourable conditions such as payments based on a schedule rather than for work progress.

Last Friday (June 8), former prime minister Datuk Seri Najib Tun Razak denied that the ECRL payments was based on a fixed schedule, and warned that the cancellation of the ECRL could result in losses amounting to RM22bil.