PUTRAJAYA (April 15): The payment schedule for the East Coast Rail Link (ECRL) will be based on the project's work progress, Prime Minister Tun Dr Mahathir Mohamad says.
"Normally we don't enter into agreement or contract that we have to pay according to timeline, I suppose that has to be dropped, it must be based on work progress," he said at a press conference here today.
This compares to the previous arrangements whereby the Malaysian government has a grace period of seven years after the construction starts before making any payment.
"We will start as soon as we sign the agreement, as you know part of the work has already been done, we have to continue with that work.
"As far as payment is concern, we will pay according to the progress of the construction," Dr Mahathir said.
Asked whether the government has to bear any cost for suspending the ECRL project since July last year, Dr Mahathir merely said both parties agreed to resume the construction works as if there was no suspension.
"That (cost of suspension) has not been mentioned. We will start as if there have been no interval between the stop of the construction (in July) and the beginning of the construction," he said. — theedgemarkets.com