The Malaysian Insight

PUTRAJAYA will issue an official statement on the East Coast Rail Link (ECRL) project this week, Finance Minister Lim Guan Eng said as he appealed to people not to make a “mountain” out of conflicting statements on the project’s status.

Lim said the Chinese embassy in Malaysia was also aware of the situation and was awaiting Putrajaya’s announcement.

“The Chinese embassy also mentioned that Putrajaya is expected to make a statement next week…I hope the press won’t make a mountain out of it,” Lim told reporters in Penang today at an event where he gave out aid to pupils from 22 schools.

There has been confusion over the fate of the ECRL, a mega project mooted by the former Barisan Nasional administration with Chinese construction giant China Communications Construction Company (CCCC) as the main contractor.

The RM81 billion project was shelved after Pakatan Harapan took over the federal government in May last year in a bid to reduce national debt

Earlier last week, Council of Eminent Persons chairman Daim Zainuddin said the ECRL might continue, as Malaysia was still negotiating with China over the project.

On Thursday, Prime Minister Dr Mahathir told reporters he was “unaware” of the project’s status and would discuss the issue with the cabinet.

Yesterday, Economic Affairs Minister Azmin Ali announced that the cabinet had decided on Thursday to cancel the multi-billion dollar project, citing the RM500 million annual interest payments as the main reason for the decision.

Following Azmin’s remarks, Lim told reporters that he was “shocked” at his colleague’s announcement, adding the latter may not have been updated on Dr Mahathir’s decision.

Today, Lim said he was not talking about the project itself in his last comment responding to Azmin.

“What I said yesterday was about the timing. The cabinet has decided that a statement should be made next week. That’s what I was referring to, not the content of the project.”

Lim added he would not make any comments about the projects’ contents and contracts without referring to a written statement.

“If it involves contracts, it is appropriate to refer to the written statement,” he said. 

Based on the procurement, construction and commissioning (EPCC) contract inked by the previous BN government, the ECRL project would see CCCC – said to be the biggest highway, port and bridge design and construction company in the world - develop a railway line connecting Port Klang in Selangor to Kelantan’s Pengkalan Kubor. – January 27, 2019.