Profit of contractors in ECRL project might be reduced, assumes expert
SHAH ALAM - The profit of contractors might be reduced since the costs of the East Coast Rail Link (ECRL) project have been cut down to 12 per cent with the original cost RM85.97 billion, experts assumes.
He said most likely with the cut down cost, the ECRL design and tracks remains the same and profit of contractors might be reduced.
"The reduction of this project is 12 percent, the ministry have to disclose on the reduction in terms of what are they going to change.
"Since they did not disclose the information, I assume they might reduce the profit of contractors. It will be a good news if the contractors are willing to reduce their profits," he said.
When asked on the possibility for the project to be reviewed, Teik said most likely this time it won't because the ECRL have been changed for many times.
"It is possible for contractors to reduce profit because their profit margin is very high. If the cost is reduced by 12 percent, I believe the reduction comes from paying less to the contractors.
"Maybe in the process of construction, the constructor may change the design slightly to cover the cost," he said.
Meanwhile, Transport Expert Rosli Azad Khan said the ECRL projects do not need to be implemented right now because they do not benefit the people on the east coast.
He said there are no economic or social benefits to the ECRL project, the current infrastructure and railway structure are sufficient.
"Actually, we don't need this project, as it won't bring any economic or social benefits to the country or the people on the east coast."
"Our road network and railway infrastructure are already sufficient to meet the people's travel demand and can sustain our economy into the future."
"Besides, a single track railway is not going to make any difference," he told Sinar Daily.
He also urged the Minister of Transport Anthony Loke to be transparent on the cost of elements.
"I would like to urge Loke to be very transparent on the cost elements, which are different from previous figures quoted by previous ministers.
"He must reveal all the cost elements that constitute the total cost, including all the payoffs."
"This government boasts about transparency and accountability, so this is the best opportunity to expose all the details and financial scandals of the last government and show how our tax payers' funds have been siphoned off to benefit a few individuals," he added.
The Prime Minister Datuk Seri Anwar Ibrahim announced that the ECRL project will proceed at a lower cost of RM11.01 billion compared with the original cost which is RM85.97 billion approved in 2016.
The ECRL project, spanning 665 kilometres and comprising 59 tunnels, includes construction works in four states, namely Kelantan, Terengganu, Pahang, and Selangor, and is designed to be free from floods.
