The rail link connecting Malaysia’s west coast to eastern rural states is a key part of China’s Belt and Road infrastructure initiative. Mahathir said Monday the government chose to renegotiate the deal rather than pay compensation of 21.78 billion ringgit ($5.3 billion). The rail project will now cost 68.7 million ringgit ($16.7 million) per kilometre, down from 95.5 million ringgit ($23.2 million) previously, he said. Under the new deal, Mahathir said CCCC will form a 50:50 joint venture company with Malaysia Rail Link to provide technical support and share the operational risk. He said CCCC’s involvement as rail operator will help attract Chinese investment along the rail link corridor.

Source: National Post April 15, 2019 04:32 UTC