KUALA LUMPUR: Malaysian Rail Link Sdn Bhd (MRL) has confirmed that there are no changes to its plans regarding the post-construction partnership with China Communications Construction Company Ltd (CCCC).
This follows the signing of a memorandum of understanding (MoU) in April 2019 for the management, operation and maintenance (MOM) phase of the East Coast Rail Line (ECRL).
MRL in a statement said the plan is consistent with comments by Transport Minister Anthony Loke Siew Fook during a recent special chamber of Parliament session.
"MRL is currently the project owner of the ECRL while CCCC is the engineering, procurement, construction and commissioning (EPCC) contractor. Subsequently for the operation of ECRL, a new joint-venture company between MRL and CCCC will be established.
"A shareholders' agreement between MRL and CCCC for the incorporation of a joint-venture company to assume the role of operator or operating company (OpCo) of the ECRL will be finalised this year," it said.
MRL added that both it and CCCC will share the risk equally, with each covering 50 per cent in the event the ECRL operates at a deficit.
Conversely, it said if the ECRL generates a surplus, MRL will receive 80 per cent of the earnings, while CCCC will take the remaining 20 per cent.
The company also said that it had been designated as the asset owner of the ECRL by the government, consistent with the plans established in April 2019.
"On that note, MRL wishes to state it will have full ownership of ECRL assets on behalf of the government as the ECRL asset owner company throughout the operation phase of the ECRL.
"Hence, the government of Malaysia 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)," it said.
The 665-km ECRL project is set to be completed from Kota Bharu in Kelantan to the Gombak Integrated Terminal in Selangor by December 2026, with operations starting in January 2027.
The entire project, including the rail extension from Gombak to Port Klang, is expected to be completed ed by December 2027.