The RM81 billion East Coast Rail Link (ECRL), as well as the of RM9.41 billion Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP), will be cancelled, Prime Minister Tun Dr Mahathir Mohamad announced in Beijing on Tuesday (21 Aug) during the end of his five-day official visit to China, reported The Edge.
Aside from revealing that the penalty for cancelling these large-scale project “could be quite substantial”, he blasted the previous government as “stupid” for agreeing to such disadvantageous terms to build the ECRL and the two pipelines
“Such stupidity has never been seen before in the history of Malaysia. He (Datuk Sri Najib Razak) is the one (responsible for this)… I have never seen a contract (like this before), the money is paid before the work gets done… What kind of stupidity is this? You need to pay on time, without any conditions that work must be done,” he explained.
According to Federal Territories Minister Khalid Abdul Samad, the federal government decided to axe the two major projects as the cost is too exorbitant and the contract was only advantageous to one party.
He revealed that the Malaysian authorities cancelled the deals after talking with all parties, including the Chinese government, in a bid to protect the interest of Malaysia.
“It is the outcome of the discussion, not that we do not want to carry out (the ECRL project), but the cost is just too high. We had seen whether what Najib had negotiated before was really beneficial to the country or not.”
The Star reported that top officials of ECRL’s owner Malaysian Rail Link (MRL) were greatly surprised by the government’s decision.
“MRL has paid more than RM10 billion to the main contractor, the China Communications and Constructions Company and there is a claim of RM9 billion for work done,” said a source with knowledge of the matter who wanted to remain anonymous.
“So it will be quite a waste because the figure to compensate them is quite high.”
Meanwhile, the State Government of Penang is confident of meeting its election promise to construct 75,000 units of low-medium cost and affordable houses by 2020.
“In just 100 days, we have built, building and will be building 82,000 units of low-cost, low-medium cost and affordable houses,” said State Housing Committee chairman Jagdeep Singh Deo on Tuesday (21 Aug).
It is even possible that the local government can complete over 100,000 residential properties by then, he added.
Image sourced from Malay Mail
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