ECRL main contractor says not very concerned over project review

HONG KONG (June 28): The main contractor for the East Coast Rail Link (ECRL) project, China Communications Construction Co Ltd (CCCC), is "not very concerned" about risks related to the poject's review announced by the new Malaysian government.

"We're confident (that) first of all, this project is based on business principles — it is very open and transparent. And we ourselves will definitely contribute to the growth potential of Malaysia," CCCC chairman Liu Qitao said at the Belt and Road Summit here today.

"Such a project (that is) tied to livelihoods, I believe that the new government will definitely take that into consideration. After all, we are here to promote the development of the society, economy and livelihood of the people," he said.

The Pakatan Harapan administration has said it would review the terms of the ECRL project, which has been said to cost as much as RM60 billion in its entirety.

He said concerns over the ECRL project were similar to those raised over the Colombo Port City project in Sri Lanka, which saw China Merchant Port Holdings take a controlling 85% stake of the debt-laden Hambantota Port via a US$1.12 billion debt-equity swap.

"In the beginning they [had] certain concerns, but after our discussions, they discovered that it is really beneficial for the livelihoods of Sri Lankans," Liu said.

He noted that CCCC is operating in over 100 countries and sees risks everywhere.

"Risks are there, but there is one thing that is very important for each project that we plan and do — it is definitely based on internal demand and the creation of value.

"If we blindly move forward in non-livelihood projects which [are] destructive for the economy or the environment, then I would think there are more risks," he said.

Regardless of which government is in power, Liu said "as long as it is a good project, everyone will be confident about it". — theedgemarkets.com

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