M’sia pays US$76.3m to S’pore for termination of rail project

Then Malaysia's Prime Minister Najib Razak (right) speaks as Singapore's Prime Minister Lee Hsien Loong looks on during a joint press conference after a signing ceremony to team up on a high-speed rail link between Kuala Lumpur and Singapore, at Najib's official residence in Putrajaya, outside Kuala Lumpur on July 19, 2016. (PHOTO / AFP)

KUALA LUMPUR – Malaysia has paid S$102.8 million (US$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. 

In the joint statement, the two countries said they reached an amicable agreement on the amount following a verification process by the Malaysian government

The neighbouring countries terminated the long-delayed project, estimated to cost around US$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. 

READ MORE: Singapore, Malaysia terminate high speed rail project

"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-km (217 mile) rail link, leaders of both countries had said in January. 

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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.