The Government has terminated the Engineering, Procurement, Construction and Commissioning (EPCC) contract awarded to China Contractor China Communications Construction Co Ltd (CCCC) for the RM81 billion East Coast Rail Link (ECRL) Project, a source told today.

CCCC was instructed to stop all construction works and services regarding the ECRL Project by Finance Minister Lim Guan Eng on July 3 last year until further notice, pending a review.

The ECRL is among several mega projects being reviewed by the current Pakatan Harapan Government, in this case due to the cost of undertaking the ambitious railway link that forms part of China’s “One Belt, One Road” Initiative.

The Project was first approved by the Cabinet on Oct 31, 2016, while the EPCC agreement was signed with CCCC on Nov 1, 2016.