The cabinet will make an official announcement next week on the China-backed RM81 billion East Coast Rail Link (ECRL) project, says Finance Minister Lim Guan Eng.

Lim said that since the ECRL is a massive project, it was only proper that the announcement be made via a written statement.

"The content of the project will be announced next week, and I hope the press will not make a mountain out of a molehill... please wait for the official statement," he told reporters in Seberang Jaya today.

Lim added that the Chinese Embassy in Malaysia has been informed of the date of the official announcement.

Singapore’s Straits Times recently reported that Malaysia was in the process of seeking a new contractor to lead the ECRL project, after terminating the contract earlier awarded to China Communication Construction Company Ltd (CCCC).

Quoting sources, the report said Putrajaya was seeking to cut in half the cost of the mega-rail project from the original estimate of RM81 billion.

Yesterday, Economic Affairs Minister Mohamed Azmin Ali revealed that the cabinet had decided to cancel the ECRL, as the government would otherwise have to pay RM500 million in interest annually.

Lim, however, was later quoted as saying that Azmin might "not have been informed" of certain matters previously decided by Prime Minister Dr Mahathir Mohamad on the project.

- Bernama