KUANTAN: The East Coast Rail Link (ECRL) project and asset owner has clarified that the project’s contract did not involve the purchase of companies allegedly linked to wanted businessman Jho Low for US$315mil.

Malaysia Rail Link Sdn Bhd (MRL) said information in an English language weekly’s article titled Jho Low’s Handiwork, was completely incorrect and misleading.

MRL said the claim that the ECRL contract came with a clause requiring the China Communications Construction Company Ltd (CCCC) to nominate a company unrelated to it to buy 70% of Putrajaya Perdana Bhd for US$244mil as well as 90% of Loh & Loh for US$71mil was a baseless and irresponsible allegation.

“There is no contract between CCCC and MRL that stipulates this clause. Neither does this clause appear in the loan agreement between MRL and the Export-Import Bank of China.

“As the project owner of the 688km ECRL, the inaccurate information presented in the said article potentially ruined the reputation of MRL and its cordial relationship with CCCC, the main contractor of the project,” MRL said in a statement issued by its corporate communications department yesterday.

MRL said realisation of the long over­due ECRL infrastructure project was done based on a government to government (G2G) agreement.

“It mooted the setting up of a special purpose vehicle (SPV) company to oversee its implementation.

“MRL was incorporated on Sept 26, 2016, and following that only the engineering, procurement, construction and commissioning contract with CCCC and the loan agreement with Export-Import Bank of China is within our purview with regards to the ECRL project,” it explained.

MRL also said progress of the ECRL project has reached 14.33%, which includes setting up of base and satellite camps in all eight sections of the project, land acquisition, site clearing and construction of road access.

Multiple road access totalling some 95km in length and temporary bridges spanning 1,067m have been constructed at many of the ECRL project sites in the east coast states, it said.

“A key catalytic project, the ECRL is progressing slightly ahead schedule and is on track for completion and operation by mid-2024.

“As of now, the construction works for seven tunnels in various parts of the rail alignment in Pahang and Terengganu have commenced.

“Preparatory works for South-East Asia’s longest rail tunnel – the 16.3km Genting tunnel is also in progress.

“The tunnel boring machines for the twin-bore Genting tunnel is expected to arrive this November to facilitate tunnelling works between Bentong and Gombak,” it said.

MRL added that it trusts the Federal Government will soon make an informed decision on the best course of action regarding the ECRL project.

“Meanwhile, we continue to provide information to the Federal Government in their review of the project,” it said.