‘RM100B LOAN RUMOUR NOT TRUE’
Oil, gas blocks off Sabah not put up as collateral, says minister
THE government has dismissed a viral message alleging Prime Minister Datuk Seri Najib Razak has collateralised oil and gas blocks off Sabah to China in exchange for a RM100 billion loan, calling it absolute lies.
Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan said the message, supposedly warning Sabahans, MPs and assemblymen about the Trans Sabah Gas Pipeline (TSGP), was spread by irresponsible parties, who would benefit from the people’s anger and distrust towards the federal and state governments.
“The owner-cum-developer of the TSGP is Suria Strategic Energy Resources Sdn Bhd (SSER), a company wholly owned by the Finance Ministry, while the China Petroleum Pipeline Bureau (CPP) is the project’s engineering, procurement, construction and commissioning (EPCC) contractor,” said Rahman.
He said while the project would be funded by a soft loan from the Export and Import Bank of China, there was no truth to allegations that the loan amount would be RM100 billion.
“The loan amount was RM4.53 billion, which constitutes the total cost of the project and it would be guaranteed by the Federal Government.
“With the guarantee in place, there’s no need for SSER to collateralise any Malaysian oil and gas block to the Chinese.”
Rahman explained that land matters were strictly under the state’s jurisdiction.
“Without engagement and cooperation between the Sabah government and the Federal Government, the project could not proceed,” he said, debunking the claim that the state government was not consulted or involved in the project.
“Materials, equipment and labour to build the pipeline are sourced from local and foreign suppliers, similar to other infrastructure projects, such as the Mass Rapid Transit and East Coast Rail Line.
“With this key energy infrastructure project, Sabah will be able to move up the value chain and add value to local commodities and raw materials, thus reducing the state’s dependency on primary industries, create employment for the people throughout the state, and increase their income level.”
On the Labuan-Menubok Bridge, Rahman explained that the project had been identified by the government as a key enabler to spur the economic development of Labuan and nearby regions.
“Being strategically placed, this will leverage Labuan’s current position as a global and regional centre for international business and finance, and is in line with the government’s aspiration to develop Labuan into a smart and sustainable island city with a welldiversified economy by 2030,” said Rahman.
The government, he added, had approved the proposed LabuanMenumbok Bridge project and had set aside RM14.31 million in the 2018 Budget to carry out a Techno-Economic Feasibility Study.
“This is critical to determine the technical feasibility and the study will give a financial and economic appraisal of the project.
“It will involve comprehensive data collection and engineering studies to develop the technical concept for the project.”