KUALA LUMPUR, Dec 4 (Bernama) -- Works Minister Datuk Seri S. Samy Vellusaid Thursday that the Cabinet has yet to decide on the terms andconditions relating to the RM14.5 billion electrified double-trackingrailway project which will link Ipoh with Padang Besar and Seremban withJohor Baharu.

He said that the pricing on negotiations for works to be undertaken byIrcon International of India for the northern part of the project fromIpoh to Padang Besar were still ongoing.

On Tuesday, Samy had said that Ircon and China Railway EngineeringCorporation were to negotiate the pricing with the government for 70percent of the works for the northern and southern regions respectively.

The project, awarded to the MMC-Gamuda consortium, forms part of the 5,000kilometre Trans-Asia railway link between Singapore and Kunming in China.

"The Cabinet has not made a decision yet, therefore all the decisions madeso far stands. The new decision has yet to be finalised," he told a pressconference here Thursday.

Samy also said the Ircon would not be a sub-contractor (of MMC-Gamuda) buta nominated sub-contractor appointed by the government.

"The government will pay them directly and not through the main contractor(MMC-Gamuda)."

He reiterated that the MMC-Gamuda consortium would be the project's maincontractor.

Samy said he had discussions with Indian Foreign Minister Jaswant Singhand Ircon recently particularly on the pricing.

"It is still being discussed. The question is the pricing. They haveagreed to come down to a certain price. I think the price would be muchacceptable to our government," he said.

He said that Prime Minister Datuk Seri Abdullah Ahmad Badawi wanted thesub-contracting work to be given to India directly on agovernment-to-government basis under a barter trade deal.

"That means India buys palm oil from us and then they will do the rest ofthe job like the 70 percent of the northern sector of the railway," Samysaid.

Asked when the government would finalise the matter (pricing), theminister said: "The finalisation is not done yet. The finalisation will betaken later to the Cabinet by the Prime Minister."

As for the southern portion of the project, Samy said there should be adiscussion between both the Malaysian and Chinese governments.

"We have not discussed anything about it. We are still working on thenorthern part. On the southern part, we will have other arrangements," hesaid.

-- BERNAMA