PUTRAJAYA: Malaysia and China will both have equal share on the operation cost of the East Coast Rail Line (ECRL), says Anthony Loke.
The Transport Minister said that in the case of a deficit during the operation, the operating companies – Malaysia Rail Link Sdn Bhd (MRL) and China Communications Constructions ECRL Sdn Bhd (CCCECRL) – would share a 50-50 burden.
“This was part of the result of a renegotiation back in 2019 where the Chinese company would bear 50% burden in a case of operational loss.
“Meanwhile, if it’s profitable, then 80% will go to MRL and the rest to CCCECRL,” he told reporters at Zenith Hotel here on Wednesday (Dec 18).
Loke said this after attending the launching of the electrical multiple unit (EMU) and the signing of the joint-venture agreement on the ECRL operation and maintenance.
The minister said the agreement between the two companies will continue for the entire tenure of the loan repayment.
“This is to ensure that the project has to strive and operate sustainably. That’s the reason why during the renegotiation we convinced the Chinese government to ensure the success of the project,” he added.
He said that this partnership between the two operating companies was to make sure that the project would not turn into a white elephant.
“We want to ensure that this project is successful, optimisation of the tracks and train is important,” said Loke.
He also said that as part of the project, challenges caused by flooding in flood-prone areas have been taken into account including mitigation projects.
“Any flood-prone areas will be given attention by MRL and any houses which are affected will be taken care of by the contractor,” he said.
Loke also witnessed the launch of ECRL's official logo, which took inspiration from a compass with its needle pointing to the east within a four-petal blue flower.
