Poser over letter showing Malaysia rejected ‘cheaper ECRL’ offer from China

(FMT) – More questions have surfaced on the future of the multi-billion ringgit East Coast Rail Link (ECRL), this time over a letter purportedly informing China Communications Construction Company (CCCC) that the Malaysian government would not take up the company’s offer to reduce the project’s cost.

In the letter posted on social media, the finance ministry-linked Malaysia Rail Link Sdn Bhd told CCCC that the only way forward is for a “mutual termination” of the project.

When contacted, both MRL and CCCC refused to comment.

“We are not at liberty to discuss details or comment about ECRL at the moment,” CCCC’s Malaysia spokesperson Grace Cheng told FMT.

Meanwhile, when asked about Malaysia’s stand on China’s offer, Prime Minister Dr Mahathir Mohamad merely said that negotiations were still ongoing.

“I cannot say what is happening and I have to wait for the results,” he told reporters at the Perdana Leadership Foundation in Putrajaya.

The letter among others said the government cannot justify the high cost of the project “in relation to the presumed benefits”.

“MRL’s position remains the same. None of the proposals submitted by CCCC sufficiently meet MRL’s expectation or are workable within the parameters of Malaysia’s needs and budgetary constraints,” said the letter which was dated Jan 31.

Despite reports of the ECRL being cancelled by Putrajaya, Mahathir said the government had yet to make a final decision to scrap the RM81 billion project.

Instead, the prime minister said there might be more negotiations over the project.

Yesterday, Reuters quoted sources as saying that China had offered to nearly halve the cost of the project, as it wanted to save its infrastructure push in Southeast Asia.