R&M, Govt in Final Talks to Revive Stalled MEX II Highway

The stalled MEX II Highway project has taken a step forward as discussions near completion between the government, sukuk holders, and the Receivers and Managers (R&M) appointed to take over from the original concessionaire.

Works Minister Datuk Seri Alexander Nanta Linggi said the talks are aimed at determining the most viable path to finishing the 18KM highway, which has remained incomplete since 2019.

The negotiations, which follow a notice of default issued to the concessionaire in Jan 2022, cover updated completion costs, cash flow projections, traffic studies, toll rates and other measures to ensure the project remains financially and technically sound. 

The MEX II project, fully funded under a Build-Operate-Transfer (BOT) model, has no direct government financing, with all obligations now managed by the R&M on behalf of sukuk holders.

Nanta stressed that all progress claims are vetted by the concessionaire, supervising consultant and independent consulting engineer before being submitted to the sukuk holders. 

He also clarified that any alleged false claims, including the RM416 million figure raised by Jerantut MP Khairil Nizam Khirudin fall outside the Works Ministry’s purview, as the project is privately financed.

Originally intended to ease congestion on the existing MEX Expressway, the MEX II extension was slated for completion in Dec 2019. Cash flow problems stalled the works, and the project later drew public attention amid investigations into hundreds of millions of ringgit in suspected false claims. 

With talks now in their final stages, a revised plan will be presented to the Cabinet, offering the clearest sign yet that the long-delayed highway may finally reach the finish line.

Source: NST