The government says that the East Coast Rail Link (ECRL) project, which was shelved last August, may resume, provided China agrees to it being downsized, The Edge reports.
According to prime minister Tun Dr Mahathir Mohamad, Malaysia is still in talks with China on the project, and although both countries have not arrived at a solution, there is no deadline to the negotiations. “What we are trying to do is, ensuring that China will not lose money, while we don’t need to spend too much money,” he told Sin Chew Daily during an interview earlier this week.
He said that the government is in a dilemma, because proceeding with the project or terminating will entail huge costs, the latter due to the substantial compensation required. As such, Malaysia is looking to amend the project or find other solutions.
“We are still negotiating with them (China), formally or informally. Of course for them, this is a very good project, because they can earn a lot of money, they do not wish to change that,” he said.
The cost of the ECRL construction was originally reported at RM55 billion, a figure which was allocated by the former government during Budget 2017. Mahathir had previously said that terms outlined by the previous government, which entailed that the money should be paid regardless of the construction progress, were not beneficial for Malaysia, and so the current government had sought to end the project.
“But this is not easy, because we are bound by the agreement terms, we cannot just terminate as we wish, we have no money to pay China. If we terminate, the government is required to make a substantial amount of compensation. Now we are already paying a lot of money, just to postpone it,” he said.
He said the project was a waste of money with zero return. He cited the case of the West Coast railway, which has a high degree of utilisation, but has never made any money, and said the ECRL would fare
“Along the ECRL route, there are fewer people and they may not be able to afford ECRL’s fee. They are not like people living in the West Coast, doing big businesses, so you won’t be able to get back any money from the project,” he said
The proposed project is to consist of two phases – Phase 1 with 21 stations along a 600.3 km line, connecting Kota Bharu in Kelantan to the Integrated Transport Terminal Gombak (ITT Gombak) in Selangor – a future interchange for the Kelana Jaya LRT line – and Phase 2, which comprises 88 km of combined track from Gombak North to Port Klang, and an extension link between Kota Bharu and Pengkalan Kubor.
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U Tun again…………….
He calls it downsize but we all know he merely meant upping the price by an order of magnitude and awarding it to his favourite cronies. And then he has the cheek to call it cost savings.
He has the cheek to say all East Coast businesses aren’t big nor should they be assisted to grow via better commerce. To him, they should just remain in their fishing villages forever stay poor. He has never change and never will. Those who says that he has are just fooling themselves and the electorate.
I am gald we have a clean Government now. Always saving us money. Just like LRT3 from RM32 bil down to RM16 bil.
Thank you PH for being honest!!!!
Kulum, jangan tak kulum telor tu…
LRT3 should completed in 31 August 2020. But extended to 2024. Where is Wawasan 2020??
Lucky we can save money now with clean process of tendering. Now, no more kroni who will double the cost or triple the cost like before
That time we were restricted to double or triple, now we can charge 10x more and still tell people this is a cost down measure. Those fools will buy it anyways.
Agreed, thanks to Tun M and Pakatan ministers for saving the country from its downfall.
I still don’t understand why so many cybertroopers love MO1 and his corrupted regime.
Thank you Tun M
No more corruption like the past 60 years. So, now we enjoy a good and clean Government
Our Tum Mahathir is 1000X more brains than the old corrupted Birkin dude
Correcto. 1000x more brains at stealing from the rakyat than the old corrupted Birkin dude.
I concur.
Let frustated cybertroopers say what they want, now Malaysia Baru will be a great era of prosperity without corruption, 1MDB and fake news.
Kesian lah cybertroopers
Aik. So now Malaysia is back on track to jual to China? Wasn’t this the excuse they gave in demonising ECRL during GE14?
Pakatan kuat u-turn lah.. lulz.
Takde harapan langsung.
Read again.
No need to read. Just watch Tun videos constantly repeatedly saying, “ECRL maksudnya dah jual kepada China”. So meaning now Tun is selling out to China. Nuff said!
Understood. Canceling it makes the new PH gov obliged to pay compensation to China. So why cancel it in the first place? The PH gov never read the T&C before? Why not negotiate it back then; instead of straight away cancelling the whole thing? This is really a U-turn gov.
Good news for the rakyat!!!!!
Lolz! Another Uturn again. This is a pusing pusing Gov.
Young n fresh, slurpp. Lolz!
Sorry but turtle eggs have been banned for consumption.
It’s ok if you need to take a u -turn like making a “kona baring at roundabout”….rather than go straight and lost…..
Kona baring u turn into oncoming traffic will endanger not just yourself but unnecessarily others as well. It’s not ok to get others in danger, especially when it involves the whole country.
It is quite obvious of his hatred for West Coast folks because they have never fully bowed down to him during his 22 years in charge and they still don’t in his 2nd Coming.
Train service connecting to there has always been a service to the rakyat there, it was never meant to make any substantial profits from the riderships because it would then be unaffordable to these folks.
ECRL would have served their causes but not his, and that’s why the swift cancellation that time, as punishment for going Green instead Flower & Orange.
Agree on this. Madhatter has no choice but to proceed with this project. Yet he will still venture to make it fail as per his imply that he will downsize it (read: cripple it) so that it becomes unattractive for usage. Then those people with ties there will have no choice but to buy his wet dream new national car, just to balik kampung.
*East Coast folks….
what tun m thought when pm no 5 cancelled double track project (read : his project) :
Malaysia has one of the most extensive system of express highways in Southeast Asia.
But still the roads are very congested.
Too many heavy vehicles such as container carriers and motorcar carriers clog the roads. Their numbers are increasing and container traffic from south Thailand add to the congestion.
Where double-tracking and electric trains have been introduced they have been very popular.
Car owners actually park their cars at train stations and use the commuter trains to get to and from their places of work. This also relieves the congestion on the roads.
We don’t have enough train users for high speed trains but double tracking and electrification can obviously improve the service and increase the speed sufficiently for our needs. In the near future trains would become more popular as road congestion will increase and slow down travel by road. We are putting nearly half a million motor vehicles on the road every year.
We did not foresee the massive increase in oil price but even if the increases are more gradual, we would still need to take off some of the passenger and container traffic from the highways and put them on the rail system. This could be done if we upgrade by double-tracking and electrification of the railways to cover the country from the south to the north.
When we proposed to extend the double-tracking and electrification from Johor Baru to Seremban and Rawang to Padang Besar, with a spur line to Kuala Lumpur to avoid congestion at the Central Station, it was not because we wanted to cater to the whims and fancies of the former Prime Minister but because we saw the need then and in the future.
Malaysia had a population of only 5 million when we became independent in 1957. By the 1990s our population was 20 million and growing fast. People were apparently more prosperous to go by the number of private cars sold every year. And they were travelling more.
The demands for improvement in transportation by road and rail is obvious even to the laymen. Government could not help noticing it. And Government must respond to the needs of the people. Hence the increase in the number and mileage of highways. And obviously the improvement of the rail system.
When the double-tracking and electrification of the railways from Johor Baru to Padang Besar was proposed the lowest proposal cost RM14 billion and would take six years to build. Roughly the Government would need RM2 billion a year for the project. It could be started in 2004.
But upon taking over the Dato Seri Abdullah Ahmad Badawi Government decided to postpone it for some reason or other, although Dato Seri Abdullah had promised the former Prime Minister to go ahead with the project.
Now the Government has found that there is a need to go ahead. Unfortunately the cost has gone up. To build the double-track and electrification of the portion from Ipoh to Padang Besar alone would cost RM12 billion, an increase of roughly 50 per cent or roughly RM 7 billion if the line from Johor Baru to Padang Besar is to be constructed (as it must).
Lately the prices of steel and fuel have increased and even the portion between Ipoh and Padang Besar would cost more than 12 billion Ringgit. The total increase from Johor Baru to Padang Besar excluding the portions already built would be far more than the original cost of RM14 billion. It would need an additional RM7 billion plus.
The Government can opt not to build. In that case the congestion on the highways and the consumption of fuel would be horrendous. If it decides to build the Government would incur a loss of public funds to the tune of RM7 billion plus.
This is the result of postponing the Railway project which had been agreed to by the previous Government.
As you can see the Prime Minister is dishing out billions of Ringgit to gain goodwill in Sabah and Sarawak at a time when there is a deficit in the budget. One must wonder over the way public money is spent by this Government.
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now why he can not think the same for ECRL? we have big business here called ‘oil & gas’. and at leats 4m people live in pantai timur.
thank u
PH government reduce cost by reducing number of stations in LRT3 …. rakyat di tipu. If u say corrupt gov in 60 years that means 22 years under madey is also included?? Look at Penang Dev Corp. hancur bcoz of LGE.
Not a good move for Tun M. Cancel the project , still pay compensation ; continue to do the project , you still pay. Pay the money to get something or pay to get nothing , think again. Obviously for now , Tumpat – JB Sentral only running through jungle at central Banjaran Titiwangsa, but not the East Coast. Take a look on 140km/h operating speed limited express ETS , currently doing well without much car involved as they riding the train to other state, now imagine ECRL with a standard gauge railway and running 200km/h top operating speed with a 10-car set carrying 1000+ of people per trip, whole East Coast also benefit, when people thinking about ticket price, you gonna work harder to afford it rather than complain, because at the end it’s all about inflation. Public transportation are meant for benefit the rakyat rather than benefit the kroni. Sincerely I do hope with ECRL , travelling to East Coast city will be efficient and fun !