News: CCCC “Upset” Of ECRL Suspension

Jul 10, 2018

While it has not been terminated, the East Coast Rail Link (ECRL) project has been suspended – to the dismay of China Communications Construction Company (CCCC).

“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,” read the statement of CCCC, the project’s engineering, procurement, construction and commissioning (EPCC) contractor.

The suspension comes after Finance Minister Lim Guan Eng announced that the cost of the mega project would have to be reduced for it to be financially viable.

The Star reported that the project cost has ballooned to RM80.92 billion from the RM55 billion cost announced during the project launch in March 2017.

Although CCCC will adhere to the stop work order, it remains concerned of incurring additional cost, damages and loses from the suspension considering that the order has not specified the duration of the suspension, reported The Sun Daily.

“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 hopes to secure a win-win solution through sincere negotiations with good will among the parties.

“We also hope that the suspension will be lifted as soon as possible for the benefit of all parties.”

It noted that the contract entered into by MRL and CCCC was made through legal processes; hence, MRL should respect and honour the contract.

An important project for Malaysia, the ECRL project will not only benefit the people but also the economic development along the route, said CCCC.

Image sourced from ECRL

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