In a statement, the minister in the Prime Minister’s Department called this a “total and blatant lie”.
Although the project would be funded by a soft loan from the Export and Import (Exim) Bank of China, he said the loan amount was RM4.53 billion, not RM100 billion.
He said RM4.53 billion constituted the total cost of the project and 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,” he said, referring to the project owner and developer, Suria Strategic Energy Resources Sdn Bhd.
SSER is wholly owned by the finance ministry.
China Petroleum Pipeline Bureau (CPP) meanwhile is the project’s engineering, procurement, construction and commissioning contractor.
Rahman said as land matters were strictly under state jurisdiction, the project would not be able to proceed without engagement and cooperation between the Sabah and federal governments.
“Materials, equipment and labour to build the pipeline are sourced locally and overseas, similar to other infrastructure projects such as the MRT (Mass Rapid Transit) and ECRL (East Coast Rail Line),” he added.
“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.
“This will reduce the state’s dependency on primary industries and create employment for the people throughout the state, increasing their income levels.”