Malaysia’s East Coast Rail Link to Proceed After Costs Slashed

• 21 May 2019
• Local News
• 964 Views

After cancelling the Chinese-sponsored East Coast Rail Link in February 2019 due to concerns about the huge price tag, the Malaysian government has announced work will restart after costs have been slashed by US$5 billion.

The first two phases of the 688km rail link will cost about $10.6bn, rather than the original estimate of $15.9bn, according to a statement from the office of Prime Minister Mahathir Mohamad in mid-April.

After work was initially halted in July 2018, lengthy negotiations have resulted in a new deal being signed with the original contractor, China Communications Construction Company. The objective of the new agreement according to the government statement is to “surely benefit Malaysia and lighten the burden on the country’s financial position”.

The East Coast Rail Link will connect Port Klang on the Straits of Malacca to Pengkalan Kubor.

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