Finance Ministry suspends ECRL and gas pipeline contracts

  • Nation
  • Thursday, 05 Jul 2018

Finance Minister Lim Guan Eng

PETALING JAYA: The Finance Ministry has issued a suspension notice through MoF. Inc. for all contracts related to the Multi-Product Pipeline (MPP), the Trans-Sabah Gas Pipeline (TSGP), and East Coast Rail Link (ECRL) projects.

Its Minister Lim Guan Eng (pic) said that the suspension notice to all contracts related to MPP, TSGP, and ECRL was issued on Tuesday, July 3, after receiving an instruction from Prime Minister Tun Dr. Mahathir Mohamad.

He said that the suspension notice has taken effect immediately after it was issued, until further notice was given by the Ministry.

“The decisions are solely directed towards the related contractors relating to the provisions mentioned in the agreements, and not at any particular country,” he said in a statement issued on Thursday (July 5).

He said that suspension notice was issued to Suria Synergy Energy Resources (SSER), a wholly-owned subsidiary of MoF Inc, which was tasked to handle the MPP and TSGP projects, and Malaysia Rail Link Sdn. Bhd. (MRL), also a wholly-owned subsidaries of MoF Inc., which was mandated to handle the ECRL project.

He said that the MPP and TSGP projects, with a total construction cost of RM9.4 bil was awarded to China Petroleum Pipeline Bureau (CPPB) on Nov 1, 2016.

Meanwhile, the ECRL project was awarded to China Communications Construction Company (CCCC) as the main contractor.

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