ECRL contract in line with PWD standards, Najib tells Dr M

The contract with China for the East Coast Rail Link (ECRL) was signed in accordance with Public Works Department construction standards, former premier Najib Abdul Razak said today.

Najib was responding to Prime Minister Dr Mahathir Mohamad remarking that Putrajaya is having a hard time renegotiating the rail deal with Beijing due to the huge costs involved.

"There are, of course, clauses for termination in the ECRL agreement, as there are in all PWD agreements.

"If the government is trying to say that this contract is interminable, then they have to prove it by divulging the PWD contract," he told Malaysiakini.

Najib added that the company involved in the deal is a Beijing-owned enterprise, and the deal was signed between the Chinese and Malaysian governments.

Mahathir lamented in a New Straits Times interview earlier today that Putrajaya would have to fork out a large sum for compensation if the ECRL contract were to be terminated.

Huge costs would also be incurred if the project is maintained, he added, due to the allegedly lopsided contracts inked by the previous BN administration.

"We thought we could just cancel the project, but it was not to be like that, because they had entered into an agreement which tied them up very tightly to the other party. 

"So to get out of it, we need not only offer to take over, but also to persuade the other party to agree to our case," he was quoted as saying.

"It has taken almost a year, we still cannot get around to determining (an outcome). We have been able to talk about reducing the cost, and this must be substantial, but the amount the other party was prepared to reduce is not sufficient for us. 

"So many things have to be negotiated and at the back of it is the Chinese government. We cannot afford to ill-treat a Chinese company here without incurring the displeasure of the Chinese government. 

"So it has been very tough trying to undo the wrong things that Najib has done," he added.

Despite this, Mahathir said, the ECRL project will go on – albeit on a lesser scale, and at a lower cost.

 - Mkini