KUALA LUMPUR: Malaysia Rail Link Sdn Bhd (MRL) rubbished allegation that the East Coast Rail Link (ECRL) project requires China Communications Construction Company Ltd (CCCC) to nominate an unrelated company to buy stakes in two construction firms for a total of USD315 million (RM1.24 billion).
MRL, which is ECRL project and asset owner, also refuted a claim that the clause - purportedly where the nominated company would buy 70 per cent of Putrajaya Perdana Bhd for USD244 million (RM957 million) and 90 per cent of Loh & Loh for USD71 million (RM283 million) - is part of the loan agreement between it and Export-Import Bank of China.
In a statement today, the company labelled the allegation as completely incorrect, misleading, baseless and irresponsible.
“There is no contract between China Communications Construction Company Ltd (CCCC) and MRL that stipulates this clause. Neither does this clause appear in the loan agreement between MRL and the Export-Import Bank of China.”
“As the project owner of the 688-kilometre East Coast Rail Link (ECRL), the inaccurate information presented in the said article potentially ruins the reputation of MRL and its cordial relationship with CCCC, the main contractor of the project.
“As such, MRL urges the media to engage with its Corporate Communications Department to verify information with regards to the ECRL project,” it said.
MRL was responding to the allegation contained in The Edge Market’s article “Jho Low’s Handiwork” published in the English business weekly’s June 11-17 edition.
The Edge claimed that Putrajaya Perdana and Loh & Loh were linked to businessman Low Taek Jho, who is embroiled in the 1Malaysia Development Bhd (1MDB) scandal.
Popularly know as Jho Low, he has an arrest warrant issued against him by the Malaysian Anti-Corruption Commission (MACC) in the graftbuster’s probe into 1MDB.
MRL said that realisation of the long overdue ECRL infrastructure project was based on a Government-to-Government (G2G) agreement and that it mooted the setting up of a special purpose vehicle (SPV) company to oversee its implementation.
It said that following its incorporation on Sept 26, 2016, only the engineering, procurement, construction and commissioning (EPCC) contracts with CCCC and the loan agreement with Export-Import Bank of China were within the company’s purview with regards to the ECRL project.
“To date, the ECRL has made 14.33 per cent in overall progress of its construction which includes setting up of base and satellite camps in all eight sections of the project, land acquisition, site clearing and construction of road access.
“Multiple road access totalling some 95 kilometres in length and temporary bridges spanning 1,067 meters have been constructed at many of the ECRL project sites in the East Coast states.
“A key catalytic project, the ECRL is progressing slightly ahead schedule and is on track for completion and operation by mid-2024. “As of now, the construction works for seven tunnels in various parts of the rail alignment in Pahang and Terengganu have commenced,” said MRL.
“We trust the Federal Government will soon make an informed decision on the best course of action regarding the ECRL project.
“Meanwhile, we continue to provide information to the Federal Government in the review of the project.”