KOTA KINABALU: The Federal Government wants the Trans-Sabah Gas Pipeline (TSGP) project to be completed or it will begin steps to recover the RM3.5bil already paid out.
Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin (pic) said that although 88% of the total cost of RM4.06bil had been paid for the project, no pipelines have been laid.
So far, only 11.4% of land clearing has been completed.
The gas pipeline project was reportedly kept hidden in the "red files" discovered by the Pakatan Harapan Government after it took over from Barisan Nasional.
She said that the Finance Ministry (MOF) had already taken action against the government-linked companies that were wholly owned by MOF previously with all the management replaced by new appointments.
"What will happen to that RM3.5bil is still in discussion and there are two options – we get the project done or recover the money," she told reporters after a town hall meeting with energy stakeholders here Saturday (July 28).
The project involved laying some 662km of gas pipelines from Kimanis Gas Terminal in west coast Sabah to the east coast towns of Sandakan and Tawau.
Yeo said that they have been no updates on the RM3.5bil as of yet, but the Government will make it public when they find out what happened to it.
She explained that the non-completion of the gas pipeline project was one of the reasons for power disruptions in Sabah.
She added that there was a need to improve the network so that Sabah's west coast will be able to meet the power needs of the east coast areas of the state.
"Our immediate needs in the next three to five years are to strengthen the network so that the additional electricity from the west coast can be shared with the east coast while we look for other alternatives to increase the supply in the east coast," Yeo said.
She noted that the Federal Government will spend RM840 million to undertake the upgrading of six electricity grid projects to improve the east-west network.