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KUALA LUMPUR – Malaysia will not pursue the East Coast Railway (ECRL) project with China unless its price is significantly reduced by 81 billion schillings (27.4 billion dollars). become financially and economically feasible if there is a drastic price reduction of the project by the CCCC, "said Finance Minister Lim Guan Eng in a statement on Tuesday, July 3, referring to the main contractor of the project, China Communication Construction Company (CCCC)
According to Mr. Lim, while nearly RMB 20 billion has already been spent to build the railway spanning the east and west coasts of the Malaysian Peninsula, about this amount may to be recovered if the project is canceled, by repaying an advance payment bond.
"In case of a disaster scenario, the federal government can recover 10.02 billion RM from RM 19.88 billion a year. id, "he said.
Mr. Lim had already stated that it would not be logical to cancel the project because the government had already spent RMB 20 billion on this project.
The ECRL, a project signed in 2016 by the former Najib Razak Administration, aims to connect the main port of Klang to Selangor with the border town of Pengkalan Kubor in Kelantan.The so-called bridge has been touted as a game changer, altering the regional trade routes currently navigating between the occupied Malacca Strait and the South China Sea via Singapore.
The railway, originally estimated at RM55 billion, is a of several megaprojects examined by Pakatan Harapan's new government while he is grappling with over 1 trillion RM of national debt.
Mr Lim said Tuesday that the total cost of the ECRL is of RM 81 billion, considering the acquisition of land. interest, fees and other operating costs. Construction costs alone account for most of the total amount, at RMB 66.78 billion
The railway should also not cover its operating costs, although the cost of the project is not the same. the extent of the operating deficit can not be determined for the time being. He also noted that the Selangor government had not been consulted on the project, which could jeopardize the state government's request to make the Klang Gates Quartz Ridge, the longest of its kind in the world. world, a UNESCO World Heritage Site. function (d, s, id) {
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