China's CCCC hopes review of East Coast Rail Link project will not take long

BEIJING: China Communications Construction Co (CCCC), the contractor for the 688km East Coast Rail Link (ECRL), hopes the review by the Malaysian government would not take long, says its vice-president, Sun Ziyu.
He said the ECRL is the one project that has been significantly affected since the new Malaysian government took office, adding that the value of the contract is high due to the long and complex alignment of the track via tunnels and bridges.
"It is understandable for the new government to review such a big project, but they should not take too long to come to a decision," he told a Malaysian media delegation, led by the Chinese Embassy in Kuala Lumpur, at the group's headquarters here on Saturday.
Sun said CCCC had already started earth works, excavating tunnels, building road foundations, procuring bridge construction equipment and materials, hiring workers, as well as establishing partnerships with over 700 local subcontractors, suppliers and consultants.
"Ever since the suspension of work, losses are incurred every day. As a contractor, this is upsetting and impacts us negatively," he added.
Sun said while CCCC understands the need to review major infrastructure projects after a change in government, the suspension should not be for long because it is not a win-win situation for both sides.
Citing an example, he said the Colombo Port City Project that CCCC invested in Sri Lanka was suspended for one year due to a change in the political environment, but it has now resumed and is progressing well.
Sun said the ECRLis a key foreign trade project between China and Malaysia and it originated from the idea of the Pan-Asia Railway Network. Under the Belt and Road Initiative, China and Malaysia are strategic partners, making communication between the two governments crucial.
"As we signed the contract with asset owner Malaysia Rail Link Sdn Bhd (MRL), so our discussion is with the asset owner. We will follow the contract and we believe that the issue could be resolved by negotiation.
"However, we are suffering losses every day as long as the suspension is still in effect. Therefore, we cannot afford for it to be suspended and leave the issue unresolved for too long," he explained.
Sun said CCCC believes the problem can be resolved amicably as the ECRL is a key infrastructure project that will offer long-term benefits to Malaysia.
"We fully understand the new government's concern about the debt crisis, but as a public company we are also accountable to our shareholders," he said.
On the question of whether CCCC would consider being an equity partner in ECRL, Sun said: "We are open to discussion. We can adopt the transit-oriented development concept in the railway project." – Bernama