5 days ago
- Business
- New Straits Times
Discussions underway to complete stalled MEX2 Highway project
KUALA LUMPUR: Discussions are being finalised with the Receiver and Manager (R&M) to determine the best solution for completing the remaining works of the MEX2 Highway project.
Works Minister Datuk Seri Alexander Nanta Linggi said this followed a notice of default issued by sukuk holders to the highway concessionaire in January 2022.
He said the discussions also involved aspects such as the cost of completing the project, cash flow, a traffic study analysis, toll rates, and other matters to ensure the project remains viable.
"The MEX2 Highway project is fully funded by the developer or concessionaire through the Build-Operate-Transfer (BOT) method.
"As such, any information related to project progress, including progress claims, is reviewed and verified by the concessionaire together with the supervising consultant (SC) and the independent consulting engineer (ICE), and submitted directly to the sukuk holders.
"All concession obligations have been handed over to the R&M appointed by the sukuk holders to resolve financial issues and complete the remaining construction works of the project," he said in a written reply.
He was responding to Khairil Nizam Khirudin (PN-Jerantut) on the prolonged delay in the MEX2 project and allegations of RM416 million in false claims by the developer, which had negatively impacted the public and government.
On the alleged false claims, Alexander said the matter was beyond the knowledge of the Works Ministry as the project was privately financed.
"Any approval for advance payments or progress payments does not involve any process related to the government," he said.
