China will not be given free land in Malaysia in exchange for the RM21.5 billion reduction with regard to the East Coast Rail Link (ECRL) project, said Finance Minister Lim Guan Eng.
He was responding to the allegation that 4,500 acres of land would be given to China.
Although he did not have information regarding this as it was not raised during the cabinet meeting, the minister does not believe the allegation is true.
“I do not think that is correct because we are looking at the contract (supplementary agreement). If there is anything additional (terms), it has to go to the cabinet.
“So far, we have not been informed, like what you (the media) have been informed, about the additional 4,500 acres of lands to be given free.
“What I want to say is that the 4,500 acres of land will not be given for free,” he told reporters in Putrajaya this morning.
On April 12, Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Company Ltd (CCCC) inked the supplementary agreement in Beijing.
Following this, it was announced that the construction cost of the ECRL had reduced by 32.8 percent to RM44 billion.
However, blogger Raja Petra Kamaruddin alleged that the discount was given by CCCC in exchange for 4,500 acres of land at seven different industrial parks near the ECRL stations.
On another development, Lim also said he has no information of Putrajaya purported plan to swap the RM2.4 billion 1MDB bond held by Retirement Fund Inc (KWAP) and Lembaga Tabung Haji with Bandar Malaysia’s equity.
He, however, felt there was nothing to worry about any bond held by these two entities as they were guaranteed by the government.
“On Bandar Malaysia, (please) wait for the official announcement of the prime minister (as) this involves a contract that will be signed and sealed,” he said.
The Edge had quoted a source saying that the government, in its effort to reduce 1MDB’s debt burden, mulled to swap the 1MDB bond held by the two entities with Bandar Malaysia’s equity.
On April 19, Prime Minister Dr Mahathir Mohamad announced that the government would resume the Bandar Malaysia project with a gross development value of RM140 billion after it was suddenly stopped in May 2017.
The project will be awarded once again to the initial contractor IWH CREC Sdn Bhd, a consortium comprising Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp, on the basis the previous administration had been “unfair” to them in terminating their agreement.
Earlier today, Lim signed two contracts worth RM2.17 billion, on behalf of the government, with Bombardier Hartasuma Consortium (BHC) to provide 27 new train sets and refurbish two-car train sets for Kelana Jaya light rail transit (LRT) line.
The new train sets cost about RM1.7 billion while the mid-life refurbishment of train set cost RM473 million.
The first new train is expected to arrive first quarter of 2020.
MKINI
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