Malaysia-China Railway’s $1.8 billion large-scale project failed Reuters

KUALA LUMPUR (Reuters)-The parties stated in a joint statement that an equity transaction involving a planned large project involving the government, developer Iskandar Waterfront Holdings (IWH) and its Chinese partners will not Through mutual agreement.

The agreement between IWH and its partner China Railway Engineering Corporation (CREC) to acquire a 60% stake in the mixed commercial project in Malaysia City for 7.41 billion ringgits (US$1.77 billion) expired on May 6 after failing to meet the conditions. The statement was announced on Wednesday Say.

Malaysia City was originally intended to be the terminus of the now-abandoned high-speed rail link between Kuala Lumpur and Singapore. The project is owned by TRX City under the Ministry of Finance. It was originally announced in 2011, cancelled in 2017, and resumed in April 2019.

The statement said that all parties have been working hard to find solutions to maintain the partnership.

“Despite such efforts, so far, the two parties have failed to reach an agreement on the extension clause,” it said.

IWH-CREC, the developer of the joint venture, paid a deposit and advance payment of 1.24 billion ringgit to the government last year to allow them to start work in Malaysia City.

This approval prompted IWH to plan to go public in the first half of 2021 to raise at least 5 billion ringgit.

TRX City stated that it will continue to work on the project, and “any future business and commercialization plans will take into account market conditions and the national socio-economic agenda.”

The statement stated that China Railway Group will continue to work closely with TRX City in any future cooperation in the country.

The Malaysia City project was originally an agreement reached by former Prime Minister Najib Razak to relieve the debt burden of the scandal-ridden state fund 1MDB Bankruptcy due to payment disputes.

($1 = 4.1960 ringgit)