KUALA LUMPUR, Oct 22 ― Malaysia Rail Link Bhd (MRL) could recoup RM10.02 billion from China Communications Construction Company Ltd (CCCC) if the government decides to abandon the East Coast Rail Link (ECRL) project.
In Finance Minister Lim Guan Eng response to Tanjong Karang MP Tan Sri Noh Omar during Question Time, the former said this was because MRL made an advance payment of RM19.68 billion to CCCC.
“I would like to highlight that RM10.02 billion in advance payment can be reclaimed by MRL if the project doesn't go through.
“So, in the worst case scenario, MRL can recoup RM10.02 billion from the total of RM19.68 billion,” said Lim.
He explained that other RM9.67 billion could not be claimed as it was for project advancements up to February 15 2018.
Noh Omar had asked the government regarding the latest progress of the negotiation between the Malaysia and China over the suspended ECRL project.
Lim also explained that negotiations are still ongoing and he could not divulge the latest developments as it was still classified.
The project was initially declared as cancelled following the prime minister’s official visit to China, but it was later clarified that it was suspended.