ECRL gets green light, costs slashed by RM21.5 billion
PUCHONG: The East Coast Rail Link (ECRL) has been given the go ahead following negotiations that led to cost reduction of MR21.5 billion, from RM65.5 billion to to RM44, confirmed the Prime Minister’s Office.
“The Malaysia government welcomes the signing of a Supplementary Agreement (SA) between Malaysia Rail Link Sdn Bhd (MRL) and the China Communications Construction Company Ltd (CCCC), which will pave the way for the resumption of the East Coast Rail Link (ECRL) project.
The SA, covers the Engineering, Procurement, Construction & Commissioning (EPCC) aspects of the ECRL, was achieved after months of negotiations between the companies involved as well as the Putrajaya and Beijing.
We are pleased to announce that the construction cost for Phases 1 and 2 of the ECRL has now been reduced to RM44 billion, a reduction of RM21.5 billion, from its original cost of RM65.5 billion.
This reduction will surely benefit Malaysia and lighten the burden on the country’s financial position.
Further details on the newly inked agreement would be revealed on Monday.
The ECRL project, an initiative under the former BN administration stalled as a result of GE14 that saw BN losing federal power for the first time.
Then Pakatan Harapan opposition alliance used ECRL as an election to pull in the votes.
Shortly after winning, Pakatan Harapan sent its Council of Eminent Persons chairman, Tun Daim Zainuddin to renegotiate the project.
Beijing through its state owned CCCC embarked on this project as part of its Belt and Road Initiative.
