KOTA KINABALU (July 29): No further decision has been made regarding the operation of the Trans-Sabah Gas Pipeline (TSGP) project after the suspension notice was issued on July 3, said Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin.

The ministry was still discussing what happened to RM3.5 billion paid for the TSGP project when the actual work had not been completed, she said.

“What happened to the RM3.5 billion is still in discussion and there are two options, namely we get the project done or recover the money. I have no news update yet but when we have an update, we will announce it to the public.

“The federal government has paid 88% of the value of the project, which is RM4 billion. But there is nothing on the ground. On paper, it is stated the project is as at 11.4% completion,” she told reporters after attending a stakeholder townhall session involving Sabah's energy industry here yesterday.

Yeo said the Ministry of Finance (MoF) had already taken action against the project developer that was wholly owned by MoF under the previous government, and the entire management had been replaced by another group appointed by the ministry.

The TSGP project involved building a 662km gas pipeline from Kimanis Gas Terminal to Sandakan and Tawau, costing 3.08 billion yuan and RM2.14 billion, or about RM4.06 billion in total.

On July 3, the MoF issued a services and operation suspension notice for three multi-billion-ringgit projects including TSGP, saying the TSGP and the Multi-Product Pipeline projects were only about 13 per cent completed although88 per cent of the projects’ value had been paid.

In another development, Yeo said the Energy, Technology, Science, Climate Change and Environment Ministry was considering implementing a hydroelectric project in Sabah.

"The priorities are on long-term electrical supply and reasonable rates,” she added.