Govt reviewing new proposal to complete MEX II

 Works minister Alexander Nanta Linggi says key items such as cash flow and toll rates have yet to be finalised.

Work on MEX II, connecting the MEX Highway from the Putrajaya interchange to the KLIA highway, began in 2016 but stalled after the concessionaire ran into cash flow problems. (Bernama pic)

PETALING JAYA:

 The government is reviewing a new proposal to complete the long-delayed Maju Expressway Extension (MEX II), works minister Alexander Nanta Linggi said.

Nanta said the public-private partnership unit in the Prime Minister’s Department had received a new proposal from the receivers and managers last December to complete the construction of MEX II.

He said the government was studying the proposal before bringing it to the Cabinet for a decision.

Meanwhile, he said, the project could not proceed as several matters remained unresolved.

“Matters involving cash flow, financing costs, traffic impact analysis, the concession period, toll rates and other related issues to ensure the project remains viable have not been finalised,” he said in a parliamentary reply to Yeo Bee Yin (PH-Puchong).

Nanta said the project was placed under receivership after the company operating the highway failed to make payments to investors in January 2022.

The investors subsequently appointed receivers and managers to take over the project, restructure the finances, and complete the remaining construction.

MEX II is a planned extension of the MEX Highway linking the Putrajaya interchange to the KLIA highway.

Work began in 2016 but stalled after the concessionaire ran into cash flow problems and could not repay investors who financed the project.

In December, Nanta said about RM449 million was needed to complete MEX II. - FMT