Shafie: Sabah supports Federal Govt decision to cancel pipeline project

  • Nation
  • Wednesday, 22 Aug 2018

Datuk Seri Mohd Shafie Apdal. – Bernama

SEMPORNA: Sabah has no objections to the Federal Government's decision to cancel the RM4bil Trans Sabah Gas Pipeline (TGSP) project, says Chief Minister Datuk Seri Mohd Shafie Apdal.

"We agree with the Federal Government's decision. we have no objections to as we are aware of the financial burdens of the country caused by debts from 1MDB and others projects by the previous government.

"Maybe in the future, we can reconsider the project," he told reporters here on Wednesday (Aug 22).

He was responding to the announcement by Prime Minister Tun Dr Mahathir Mohamad during his visit to China to cancel the multi-billion East Coast Rail Link (ECRL) and Trans-Sabah Gas Pipeline (TSGP) projects for now.

Dr Mahathir had said Chinese President Xi Jinping and premier Li Keqiang understood Malaysia's concerns regarding the financial costs involved in the two Chinese government-backed projects.

Dr Mahathir said the projects involved huge amounts of money and Malaysia did not need them at the moment, especially as the country was grappling with a one trillion ringgit debt.

TSGP involves building a 662km gas pipeline from Kimanis to Sandakan and Tawau costing about RM4.06bil. The project was suspended in July.

Earlier this year, Finance Minister Lim Guan Eng said that payments amounting to 87.7% of the project cost had already been paid even though the pipeline projects were only about 13% completed.

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