Construction works for ECRL suspended pending negotiations

PETALING JAYA: Construction works for the controversial East Coast Rail Link (ECRL) have been suspended, a day after Finance Minister Lim Guan Eng said the government will need to bring the cost down to continue with it.
“We acknowledge that we have received a notice to suspend all work on the ECRL from Malaysia Rail Link Sdn Bhd (MRL) and regret that the suspension comes at this junction, as substantial work has been progressing well,” said China Communications Construction Company (CCCC) in a statement today.
It is understood that the project has not been terminated, instead the suspension is to facilitate negotiations for materials, alignment and stations, among others.
On Tuesday, Lim revealed that the final cost for the project has ballooned to RM81 billion and must be reduced significantly to make it financially viable.
CCCC in its statement said it will adhere to the stop work order, but noted that it is concerned about incurring additional cost, losses and damages arising from the suspension as the duration of the suspension has not been specified.
“We are upset and concerned about the livelihood of our 2,250 local staff, as well as several hundred sub-contractors, suppliers and consultancy firms.”
CCCC is hoping that a win-win solution could be secured through sincere negotiations with good will between the parties.
“We also hope that the suspension will be lifted as soon as possible for the benefit of all parties.”
It said the contract was signed by CCCC and MRL through legal processes and that MRL should honour and respect the contract.
CCCC added that the ECRL project is an important project for Malaysia and will benefit the people and economic development along the route.
CCCC was appointed as the engineering, procurement, construction and commissioning (EPCC) contractor for the ECRL project in November 2016.