18 March 2002 (Business Times)THE construction of the twin electric rail project between Johor Baru andSeremban will start in the next five years, State Works and UtilitiesCommittee chairman Adam Abdul Hamid said.

He said letters of intent for the project had been issued to theprospective contractors, China Railway Engineering Telecommunication(CRET) of China and Mitsui Transportation System of Japan.

CRET had been offered the infrastructure package of the project whichinvolves the building of its general engineering structure, rail tracks,stations and bridges.

Mitsui, on the other hand, had been offered the project's system packageconsisting of the installation of its communication and electrical system.

Adam, who was answering a question from Khoo Che Wat (BN-Kulai), saidnegotiations with both contractors will begin by the end of the year.

He said the financing of the infrastructure package offered to CRET willinvolve the barter trade mechanisme of the country's palm oil export toChina.

As for the financing of the system package offered to Mitsui, Adam said itwill partly involve a loan package from the Japan Bank For InternationalCorporation.

He said the twin electric rail project will include the proposed railconnections linking Kulai, Johor Baru and the Sultan Ismail Airport inSenai.

Earlier, Adam told the State Assembly that a similar rail project betweenKulai and Tanjung Pagar, Singapore, proposed in 1996 had been scrapped in1998.

The State Assembly later adjourned sine die.