Malaysia pays US$76.3 mn to Singapore for termination of high-speed rail project

Maria Rose Posted on: 2021-03-30 09:20:00 Viewer: 566 Comments: 0 Country: Malaysia City:

Malaysia pays US$76.3 mn to Singapore for termination of high-speed rail project

Kuala Lumpur, Malaysia (Urban Transport News): Malaysia government has paid $102.8 million (US$76.30 million) to Singapore for the termination of a high-speed rail project between the two countries, they said in a joint statement issued on March 29, 2021.

The neighboring countries terminated the long-delayed project, estimated to cost around $17 billion, at the beginning of the year, with Malaysia agreeing to compensate Singapore for the costs it had already incurred.

In the joint statement, the two countries said they reached an amicable agreement on the amount following a verification process by the Malaysian government.

After the expiry of the agreement on December 31, 2020, both countries terminated the long-delayed High Speed Rail project, which was expected to cost nearly $17bn, at the beginning of this year.

"This amount represents a full and final settlement in relation to the termination of the bilateral agreement," they said. The project was scrapped after the two countries failed to agree on the changes proposed by Malaysia to the 350-km rail link, leaders of both countries had said in January.

Companies from China, Japan, South Korea, and Europe had expressed interest in winning contracts to build, operate and finance the trains and rail assets, people close to the bidding process previously reported by Urban Transport News.

  




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