Govt Looking To Revive MEX II Highway With New Completion Plan

The MEX II Highway, once planned as a major traffic solution for Klang Valley, has remained unfinished since 2019. Now, the government is working with bondholders to revive the project and get construction moving again.

Talks are currently underway between federal agencies and the Receivers and Managers appointed by the project's sukuk holders, who took over after the original concession company defaulted in early 2022. 

The focus now is on finding a financially and technically viable path to completion.

Works Minister Datuk Seri Alexander Nanta Linggi said the discussions are centred on four key areas; updated construction costs, cash flow projections, long-term toll revenue, and traffic analysis. 

These factors, according to him, will help determine whether the highway can still deliver value to motorists and investors alike.
Once a revised plan is finalised, it will be presented to the Cabinet for further consideration.

“We are reviewing all aspects, including technical and financial feasibility. The aim is to ensure the project remains viable and serves the public interest,” Nanta said in a written reply in Parliament.

The issue was raised by Puchong Member of Parliament Yeo Bee Yin, who questioned how much more funding might be required and what steps are being taken to avoid similar project failures in the future.

Nanta clarified that the MEX II project was a fully private initiative, funded and managed under a contractual model where the private concessionaire builds, operates, and eventually transfers the highway. 

“All progress payments and claims were managed between the concessionaire, contractors, engineers, and the sukuk holders without government involvement in approvals or disbursements,” the minister explained.
Originally set to be completed in December 2019, the 18-kilometre extension was designed to ease congestion on the existing MEX Expressway. 

However, prolonged cash flow issues halted the work. The project has since come under renewed public scrutiny following an investigation into RM360 million worth of alleged false claims, now being probed by the Malaysian Anti-Corruption Commission (MACC).