GOV not to breathe new life into Mex II Putrajaya -Klia Highway Extension, to determine the best way to complete the project – Pultan.org

The government has repeated plans to breathe new life into the stuck Maju Expressway extension (MEX II), with the central agency currently completing the discussions with parties appointed by the Sukuk holders of the project to determine the best way to complete the construction of the highway.

According to working minister thatuk Seri Alexander Nanta Linggi, the discussions are aimed at important considerations to guarantee the viability of the project. These include investigating the completion costs of the project, the cash flow, the analysis of the traffic impact and toll interest, the New Straits Times Reports.

He said that the central agency would coordinate the planning and direction of the Mex II project with relevant ministries and agencies, especially with regard to the financial model. “This will take into account appropriate parameters for evaluating the viability of the project, including technical aspects, and will then be presented to the cabinet for consideration,” he said in a written parliamentary answer.

Nanta responded to a question from YEO Bee Yin (PH – Puchong), who asked about the current status of the highway and the steps that were taken to prevent similar situations in the future. Yeo also asked about the amount of financing needed to complete the project and whether this would lead to an increase in toll percentages.

In response, Nanta said that the Mex II is a fully privatized project, financed by the developer via a Build-Operate transfer (BOT) regulation. Because it was a private project, approval at government level is not required, he said.

“All project progress significations, including progress claims, are assessed and confirmed between the contractor, the concessionaire, the supervisor (SC) and the Independent Checking Engineer (ICE), and submitted directly to the Sukuk holders,” he explained.

In January 2022, however, the concessionaire issued a notice of absenteeism by the Sukuk holders. Since then, all concession obligations have been transferred to the recipients and managers who have been appointed by the Sukuk holders to solve the financial problems of the project and complete the remaining construction.

The construction of the 18 km long, open toll, three-riding Dual Carriageway Project started at the beginning of 2017 and would be completed in December 2019. However, work stuck due to cash flow problems and, more recently, from Macc investigations into alleged false claims with regard to RM360 million.

The aim of the highway is to offer the shortest and direct route between the KL-Stadscentrum to KLIA and KLIA 2 by connecting the 26 km long Mex with Lebuhraya Klia (FT26).

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