Malaysia: Govt to recover MYR10bn from scrapping ECRL

• PUTRAJAYA stands to recover MYR10bn in advance payments if the East Coast Rail Link (ECRL) project is cancelled, said Finance Minister Lim Guan Eng.
• “The status of ECRL, however, is still undecided pending further negotiation to reduce the costs,” Lim told Parliament during the question-and-answer session on 22 Oct 18.
• “But we stand to recover MYR10bn in advance payments if the project is cancelled.”
• Malaysia, via its subsidiary Malaysia Rail Link Sdn Bhd (MRL), has paid Chinese contractor China Communication Construction Company (CCCC) MYR19.68bn for the mega-project. A total of MYR10.02bn is as advanced payment, while the remaining MYR9.67bn is for progress payment.
• The Pakatan Harapan government said it will review the project after estimating that it will cost a whopping MYR81bn after taking into account land acquisition, interests, fees and other operational costs.
• “The payment bond of MYR10.02bn can be redeemed by MRL if the project is cancelled. Under the worst-case scenario, the federal government can recover MYR10.02bn out of the MYR19.68bn it has already paid,” said Lim.
• He added that Malaysia has had four negotiation sessions with China since Jul 18. “But until now, MRL and CCC have not reach an agreement on suggestions to reduce the ECRL costs.”

External Link: https://www.themalaysianinsight.com/s/105546