7. Vesting of assets of the railway in the Corporation
...
(2) ...there shall be vested in the Corporation... all the property, rights and liabilities which... were comprised in the undertaking of the railway.
...
(4) Subsection (2) shall not have effect in relation to--
...
(b) any contract for the electrification or modernization of the railway...
...the KCRC was not originally established as a railway builder but as a railway operator. It, therefore, had relatively limited railway project management experience in its first fifteen years, except for a comparatively small-scale Light Rail project... In that case, the KCRC mainly imported an overseas system under an indirect management approach... KCRC staff monitored the external consultants who managed the project contractors; and the costs of monitoring projects could be quite high."