KUALA LUMPUR — July 5, 2018: The Ministry of Finance has issued a services and operation suspension notice for three multi-billion-ringgit projects — the Multi-Product Pipeline (MPP), the Trans-Sabah Gas Pipeline (TSGP) and East Coast Rail Link (ECRL).
The notice was issued through Minister of Finance Inc (MoF Inc) on July 3 to China Petroleum Pipeline Bureau (CPPB) for the MPP and TSGP and China Communications Construction Company (CCCC), the main contractor of ECRL.
“The suspension notice takes effect immediately until further notice is issued by the MoF. The decisions are solely directed towards the related contractors relating to the provisions mentioned in the agreements, and not at any particular country,” Minister Lim Guan Eng said in a statement today, adding that Prime Minister Tun Dr. Mahathir Mohamad gave the instruction after seeking advice from the attorney-general.
Suria Strategic Energy Resources Sdn. Bhd. (SSER) was given the mandate to undertake the MPP and TSGP. On November 1, 2016, both were awarded to CPPB.
Lim said SSER had paid RM8.3 billion or 88 per cent of the project’s construction value of RM9.4 billion although progressive work completion which has not been audited was only at 13 per cent.
The total did not take into account costs related to land acquisition, two expert consultancy agreements and a maintenance agreement, which totalled RM1.7 billion.
Both SSER and MRL are wholly owned by MoF Inc. — Bernama