KUALA LUMPUR, July 12 — Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Co Ltd (CCCC) will share costs for the East Coast Rail Link (ECRL) operation and exchange technical knowhow and expertise as previously agreed.
In a statement today, MRL reiterated the post-construction partnership plans with CCCC remain “as per the signing of the memorandum of understanding for ECRL’s management, operation, and maintenance phase, back in April 2019”.
“The plan is consistent with the recent statement by Transport Minister Anthony Loke Siew Fook during the Parliament’s special chamber,” the statement said.
MRL is the project owner of the ECRL, and CCCC is the engineering, procurement, construction, and commissioning contractor, the statement said.
“Subsequently, for the operation of the ECRL, a new joint-venture company between MRL and CCCC will be established,” MRL said.
A shareholders’ agreement between MRL and CCCC for the incorporation of a joint-venture company to assume the role of an operating company (OpCo) will be finalised this year.
“MRL and CCCC will each bear 50 per cent of the risk in the OpCo if the ECRL operates at a deficit, while MRL will receive 80 per cent of earnings, and CCCC the remaining 20 per cent, should the ECRL operate at a surplus,” it said.
MRL said it has been appointed ECRL’s asset owner by the government, in line with the April 2019 plans, paving the way for MRL to sign an operation agreement with the OpCo, and enabling the OpCo to access ECRL’s assets for operation and maintenance.
The Malaysian government will own 100 per cent of all ECRL assets via MRL, considering the company is a wholly owned subsidiary of the Minister of Finance (Incorporated).
The statement also said the 665km ECRL project will span from Kota Bharu, Kelantan, to the Gombak Integrated Terminal in December 2026. It will be operational in January 2027.
Its full completion, involving the rail extension from Gombak to Port Klang, is expected in December 2027.
— Bernama
