KUALA LUMPUR: China Communications Construction Ltd (CCCC), the main contractor for the East Coast Rail Link (ECRL) project, confirmed receiving a notice to suspend all work on the East Coast Rail Link (ECRL) from project owner, Malaysia Rail Link Sdn Bhd (MRL).
In a statement today, CCCC said it regrets that suspension comes at this junction, as substantial work has been progressing well.
“We hope MRL will honour and respect the contract signed,” it said adding that the contract has been signed by the company and MRL via legal processes.
The company said it respects and comply with Malaysian law and it has no choice but to adhere to the suspension instruction.
While the duration of the suspension has not been specified, CCCC has expressed concerns on incurring additional cost, losses and damages arising from the suspension.
“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.
It also reiterated that the ECRL is an important project of Malaysia which will benefit the people and economic development along the route.
CCCC was entrusted to conduct the project as engineering, procurement, construction, commissioning (EPCC) contractor to assist in infrastructure construction in Malaysia.
“We hope that both sides will be able to find a win-win solution through sincere negotiation with good will. We also hope that the suspension will be lifted as soon as possible for the benefit of all parties,” it said.
Meanwhile, a source familiar with the matter told NST Business that the suspension was to facilitate review of the project, which could lead to further re-negotiations of the terms and conditions with CCCC.
However, the source said the suspension does not mean that the project is being indefinitely terminated.
“The suspension does not mean ECRL stops. It is just construction works is suspended to facilitate negotiations involving type of materials, alignment and stations, among others,” the source said.