KUALA LUMPUR ¨C Talks for a $20 billion Malaysian rail project are still ongoing, with the Southeast Asian nation expecting to make a decision ¡°as soon as possible,¡± the Star newspaper reported, citing Prime Minister Mahathir Mohamad.
Mahathir said the status of the East Coast Railway Link is being negotiated with China, and that he couldn¡¯t disclose further information until the outcome of the discussions, the newspaper said. He would also reject China¡¯s offer to halve the cost of the project, the Star reported, citing a hypothetical answer from the prime minister.
The report caps a week of seemingly mixed messages on the fate of the rail project. Malaysia¡¯s Economic Affairs Minister Mohamed Azmin Ali said a week ago the country will terminate the project as it was beyond the government¡¯s financial capability. That was followed by Finance Minister Lim Guan Eng¡¯s comment that an announcement would be issued on the instructions of Mahathir.
Mahathir said Tuesday that the government¡¯s reason for canceling the rail was a lack of funds.
China Communications Construction Co., the contractor, took earlier steps to rationalize its workforce following the Malaysian Finance Ministry¡¯s instruction last year to suspend all contracts related to Malaysia Rail Link Sdn. It also had offered to cut construction costs for the 688-kilometer (428-mile) project by as much as half, Reuters reported, citing unidentified people familiar with the matter.
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