public transportation

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

Reuters
Malaysia pays $76.3 million to Singapore for termination of high-speed rail project

FINANCIAL HUB. View of the central business district skyline in Singapore, March 26, 2021.

Photo by Edgar Su/Reuters

Malaysia and Singapore say they reached an amicable agreement on the compensation following the scrapping of their rail project

Malaysia has paid S$102.8 million ($76.30 million) to Singapore for the termination of a high-speed rail project between the two countries, they said in a joint statement on Monday, March 29.

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.

“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-kilometer (217-mile) 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 told Reuters. – Rappler.com