Chinese firm building Malaysian rail link ‘not too worried’ about review
China Communications Construction boss compares situation to a project in Sri Lanka that was renegotiated when new government took over in 2015
The Chinese state-owned firm building Malaysia’s East Coast Rail Link says it is confident the controversial project will get the new administration’s backing, after Prime Minister Mahathir Mohamad called for it to be reviewed.
Liu Qitao, president of China Communications Construction Group, compared concerns about the rail link raised by the Pakatan Harapan administration in Malaysia to what happened to the Colombo Port City project after a new government took office there in 2015.
“The new administration [in Sri Lanka] questioned the project when they first came to power ... but after negotiating, they realised the project was good for the economy and livelihoods in Sri Lanka,” Liu told the Belt and Road Summit in Hong Kong on Thursday.
“The project in Malaysia is very similar to the [port city] case in Sri Lanka ... it is good for economic growth and people’s livelihoods and I believe the new government will consider this ... we are not too worried,” he said.
Mahathir has said projects like the rail link need to be renegotiated because they are too expensive and too reliant on Chinese financing. The 92-year-old leader is expected to travel to Beijing soon, where he will negotiate with Chinese leaders to cut the cost of the project, which now stands at 55 billion ringgit (US$13.65 billion).
Malaysia’s new finance minister Lim Guan Eng earlier revealed that a 20 billion ringgit payment had already been made for the 620km rail link that will connect the rural east coast to the seaport of Klang in the wealthy western state of Selangor.