Datuk Seri Azmin Ali

KUALA LUMPUR (July 18): The fate of the RM110 billion Kuala Lumpur-Singapore High Speed Rail (HSR) project teeters on the outcome of a meeting led by Economic Affairs Minister Datuk Seri Azmin Ali with the island republic by the end of July.

“Any party that wants to cancel the project can do so because it is allowed by the agreement, but it must be based on the terms and agreement. All options including reducing the cost, cancelling the project or deferring it, are available to us. So we will table it and discuss with them.

“(However,) we have not excluded the possibility of the project going on, but are not making any suggestion unless there is a consensus from both countries,” Azmin told reporters at the Parliament lobby today.

The minister reiterated he would meet with Singapore’s Transport Minister Khaw Boon Wan to discuss options on the HSR which was expected to be completed in 2024. The project was initially said to be cancelled due to its high cost but is back on the table for review, if cost is reduced by half.

Azmin said the Attorney General’s Chamber (AGC) directed the government to review the two-way agreement signed with Singapore on Dec 13, 2016, which contains clauses to cancel the project.

“I informed the Cabinet on July 11 that AG Tommy Thomas opined that this issue must be resolved in accordance to the law. Based on his advise, we are reviewing all options. We stress that any agreement that was signed must be fair and just to both parties,” he said in a reply to Opposition leader Datuk Seri Zahid Hamidi in Parliament.

When asked about any compensation to Singapore, which has reportedly spent more than S$250 million, Azmin said Malaysia would respect the rule of law and due process, as well as terms contained in the agreement, but it will be subject to his discussion with Khaw. 

There is a formula but the actual quantum has to be determined by both parties, Azmin added.

Earlier, former Prime Minister Datuk Seri Najib Razak told the House that the government should not have calculated the costings as the deadline for the open tender ends on Dec 28 this year.

“The international open tender only ends on Dec 28, 2018 and both governments would decide on the bids. The total cost of the project is not yet known, but it would competitive. Some countries would give loans at 0% or 0.1%.

“So how can the government say it would cost RM110 billion, when the tender is not closed?” Najib, who is Pekan MP, added.

Azmin explained that calculations were made by the Finance Ministry and the ministry found that hidden costs were not earlier revealed.

He later told reporters that there are different packages in the project such as the cost of land acquisition done by Singapore, and government guarantees for procurement of trains by the Assetco, under the agreement.

“So we cannot only look at the cost of the project, there are other elements that would be determined by the parties, and discussed further. There are costs not revealed before, and learnt only later. We are open and transparent, and we must make sure that all cost must be disclosed to determine our capacity to review or otherwise,” Azmin added. — theedgemarkets.com

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