Malaysia seeks to reroute US$10.6b belt-and-road rail project
[KUALA LUMPUR] Malaysia's government on Tuesday said it will seek to reroute a US$10.6 billion rail project being built across the peninsula under China's "Belt and Road" trade initiative, and as a result will reassess the cost and schedule with the Chinese contractor.
The government revived the 640 kilometre (398 mile) East Coast Rail Link (ECRL) last year with a budget cut by a third to RM44 billion (S$14.46 billion) after halting the project in 2018.
It contracted the Malaysian unit of China Communications Construction, CCC-ECRL, to build the line.
Deputy Transport Minister Hasbi Habibollah in Parliament on Tuesday said the government plans to revert to the original route detailed in 2017 but with minor changes around the south of the capital Kuala Lumpur.
"The government will renegotiate with the Chinese government and the main contractor of the project to ascertain the cost implication and project implementation schedule," Mr Hasbi said.
He said the results of the renegotiation will be presented to the government to finalise the route.
A NEWSLETTER FOR YOU
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
The cost of the project incorporating the rerouting will be more or less the same as at present, and will not return to the higher cost of the original plan, Mr Hasbi said.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Israel concerned over possible ICC arrest warrants related to Gaza war
China’s top airlines improve balance sheet in Q1; outlook positive for May Day
G7 reaches deal to exit from coal by 2035
US, Britain urge Hamas to accept Israeli truce proposal
Saudi Arabia says economic revamp momentum intact as plans shift
German inflation creeps up to 2.4% in April