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choi baccarat( accepts 14% cost increase in China-led rail project, taking longer route


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KUALA LUMPUR, April 5 - Malaysia said on Mondaythat it had accepted an increase of nearly 14% in the estimatedconstruction cost for the proposed East Coast Rail Link (ECRL),part of China's Belt and Road Initiative, as the length of theroute would be slightly longer.

The Malaysian unit of China Communications Construction CoLtd, CCC-ECRL, is contracted to build the line.

First proposed in 2017, the project linking the east andwest coast of the Malaysian peninsula was suspended a year laterafter an election brought veteran leader Mahathir Mohamad backto power.

Mahathir put the project on ice because of allegations ofcorruption and in order to discuss the price, however, he lostpower a year ago.

Before Mahathir's coalition government fell apart, itagreed to new terms for the project, slashing the estimated costby a third to 44 billion ringgit ($10.63 billion), while thelength of the route was shortened to 640 km from 688 km.

The latest revision, agreed by the government led by PrimeMinister Muhyiddin Yassin, increase the cost to 50 billionringgit ($12.08 billion), and take the length back up to 665 km.

Transport Minister Wee Ka Siong said in a statement thatthe changes to the project enhanced "the viability of the ECRLproject and provide further economic, environmental, and socialbenefits." REUTERS



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