Plans underway to restart delayed MEX II highway construction
Works Minister Datuk Seri Alexander Nanta Linggi said the discussions involve key considerations such as project completion costs, cash flow, traffic impact analysis, and toll rates, in an effort to ensure the project remains viable.
"The planning and direction of the MEX II project will be coordinated by the central agency along with relevant ministries and agencies, particularly in relation to the financial model.
"This will take into account appropriate parameters for evaluating the project's viability, including technical aspects, and will then be presented to the Cabinet for consideration," he said in a written parliamentary reply.
He was responding to a question from Yeo Bee Yin (PH–Puchong), who asked about the current status of the highway and the steps taken to prevent similar situations in the future.
She also queried the amount of funding needed to complete the project and whether this would lead to an increase in toll rates.
In response, Nanta said the MEX II Highway is a fully privatised project, funded by the developer or concessionaire through a Build-Operate-Transfer (BOT) arrangement.
"All project progress verifications, including progress claims, are reviewed and confirmed between the contractor, the concessionaire, the supervision consultant (SC), and the independent checking engineer (ICE), and submitted directly to the sukuk holders," he said.
He added that government-level approval is not required for these claims, as the project is privately financed.
However, the concessionaire was issued a notice of default by the sukuk holders in January 2022.
Since then, all concession obligations have been handed over to the receivers and managers appointed by the sukuk holders to resolve the project's financial issues and complete the remaining construction.
In May, Nanta had said that the government was actively engaging with stakeholders to resolve the prolonged delays in the MEX II project, which was originally scheduled for completion in December 2019.
The project had faced persistent cash flow issues that halted construction, but efforts are now being stepped up to revive the stalled works.
The 18km extension to the MEX Expressway has come under renewed public attention following MACC investigations into alleged false claims involving RM360 million.
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