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KUALA LUMPUR: The Malaysian government said on Tuesday (Sept. 8) that it will seek to divert a $ 10.6 billion rail project being built on the peninsula under China’s “Belt and Road” trade initiative, and as The result will re-evaluate the cost and schedule with the Chinese Contractor.
The government revived the 640km East Coast Rail Link (ECRL) last year with a one-third budget cut to RM44 billion (US $ 10.6 billion) after halting the project in 2018.
It contracted with China Communications Construction’s Malaysian unit, CCC-ECRL, to build the line.
Deputy Transport Minister Hasbi Habibollah in parliament said Tuesday that the government plans to return to the original detailed route in 2017, but with minor changes in the south of the capital Kuala Lumpur.
“The government will renegotiate with the Chinese government and the project’s main contractor to determine the cost implication and the project implementation schedule,” Hasbi said.
He said that the results of the renegotiation will be presented to the government to finalize the route.
The cost of the project incorporating the diversion will be roughly the same as the current one and will not revert to the higher cost of the original plan, Hasbi said.
