KUALA LUMPUR (July 4): The East Coast Rail Link (ECRL) project owner Malaysia Rail Link Sdn Bhd (MRL) has instructed its main contractor China Communications Construction Ltd (CCCC) to suspend all works under the engineering, procurement, construction and commissioning contract (EPCC) of the controversial ERCL project with immediate effect.

In a letter dated July 3 sighted by theedgemarkets.com, MRL had instructed CCCC to suspend all works under the EPCC in respect of the ECRL project, among others, on grounds of national interest.

“During this period of suspension, you shall protect, store and secure the works against any deterioration, loss or damage.

“Additionally, you shall not remove any equipment, materials or any part of the works from the site, without our prior written consent.

“This suspension shall take effect immediately and will be in force until further instruction from us,” said the letter signed by MRL chief executive officer Datuk Sri Darwis Abd Razak.

An MRL spokesman confirmed with theedgemarkets.com on the instruction to suspend the ECRL project.

Yesterday, Minister of Finance Lim Guan Eng said the final cost of the East Coast Rail Link (ECRL) project is actually RM81 billion and must be reduced significantly to make it viable financially.

In a statement, Lim also said the ECRL project is also not expected to cover its operating costs.

“Indeed the RM81 billion project cost does not include operating deficit, which cannot be determined for now,” he said.