KUALA LUMPUR: Malaysia is likely to receive submission from Singapore on the amount of compensation for the termination of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project by the end of this month.
Project owner MyHSR Corp Sdn Bhd stressed that the compensation would not be "punitive" and the termination arrangements were part of the bilateral agreement between Malaysia and Singapore.
Chief executive officer Datuk Mohd Nur Ismal Mohamed Kamal said the amount had yet to be finalised by the two countries.
"Once they (Singapore) submit it to us, we will do our due diligence to ensure the claims are justified and can be verified," he said.
MyHSR chairman Tan Sri Esa Mohamed said Malaysia needed to make changes to the HSR project based on what was agreed in the bilateral agreement.
"One has to take into account the change of circumstance from 2016 to 2020, as things were different in terms of the economy and with the impact of the Covid-19 pandemic.
"We have to reassess the cost that the government is going to incur. Hence, we wanted to review and propose some changes in terms of the track alignment, project structure and business model," he said.
Esa said the major change to the HSR project was the additional layer of AssetsCo, an asset heavy company operated by a private consortium to be appointed by both Malaysia and Singapore via an open international tender.
"It is an expensive set-up that requires substantial long-term financial guarantee from the governments to ensure it is bankable," he said.
He said Malaysia did not favour AssetsCo as it would impose limitations on MyHSR in terms of the structure, financing and options for the project.
"We should maximise the best that we can for the benefit of our people," he said.
AssetsCo would be responsible for supplying, installing and maintaining trains, tracks, power supply, signalling and communication systems, and control the movement of trains in Malaysia and Singapore.
Malaysia's proposal to Singapore to remove AssetsCo followed the international tried and tested model of having only an operating company (opco) and an infrastructure company (infraco).
Following global best practises in procurement, the HSR technology and system to be procured would still be the best in class, high quality, safe and reliable.
He said Malaysia's revised proposal would allow the country to maximise the use of local resources and contractors, as well as transfer of technology programmes.
"This will boost the local construction sector, creating job opportunities for local engineers and provide invaluable knowledge in implementing HSR," he said.
Esa also said Malaysia would need to integrate with its other transportation network systems in the country for the efficiency and connectivity of the people and goods.
On the possibility of Singapore pursuing the HSR project without AssetsCo in the future, Esa said the country was open to it.
"HSR implementation globally has brought about catalytic development and growth. MyHSR has long recognised the multiplier benefits to the economy that could be brought on by the HSR project, benefiting all walks of life," he added.
Meanwhile, Nur Ismail, responding to speculation about the Kuala Lumpur-Johor Baru HSR project, said: "No decision has been made. We had been previously working hard to ensure that the Kuala Lumpur-Singapore HSR could happen and reach an agreement until New Year's Eve.
"However, it did not happen. We do not have a back-up project. Instead, we have to do a detailed study to ensure whatever future project that we want to replace this project with can stand on its own on its own merit," he said.
"There is no direct negotiation project to be awarded. No such thing. There is no project committed or decided on (new project) as of now.
"We need to have a study to ensure that whatever project that we replace it with is viable on its own. There might be a different project or HSR. But it cannot be decided now.
"We hope it (the study) can be concluded within six months. "Sooner or later, the HSR will be implemented but it depends on timing and cost (affordability)."
The bilateral agreement on the HSR project was signed on Dec13, 2016.
The agreement formalised the technical, safety and security requirements, commercial, financing, procurement regulatory frameworks, as well as customs for the project.
On Dec 31, the agreement lapsed and was therefore deemed terminated as both countries failed to reach an understanding on the way forward for the project.