CGC inks MoU to support subcontractors for the Pan Borneo Highway Sarawak

Bizjamin/-i scheme will provide financial guarantees to eligible local sub-contractors for Pan Borneo Highway project

Credit Guarantee Corp Malaysia Bhd (CGC) has entered into a memorandum of understanding (MoU) with five entities to provide financial guarantees to eligible domestic sub-contractors for the Pan Borneo Highway Sarawak Project.

The MoU was inked between CGC, RHB Islamic Bank Bhd, SME Bank Malaysia Bhd, Skim Jaminan Pinjaman Perniagaan (SJPP) and Bumiputera Agenda Streering Unit (Teraju) in Kuching, Sarawak, yesterday.

Under the Bizjamin/-i scheme, it will provide viable small and medium enterprises (SMEs) with the financial support to undertake the single largest road construction work in East Malaysia — from Sarawak to Sabah.

CGC president and CEO Datuk Mohd Zamree Mohd Ishak said the corporation is pleased to partner Lebuhraya Borneo Utara Sdn Bhd (LBU),

Teraju, RHB Islamic Bank, SME Bank and SJPP in this large-scale infrastructure development project.

“The MoU is in line with our business model to form strategic partnerships to assist potentially viable and capable SMEs in obtaining financing from the financial institutions or through direct lending from CGC,” he said in a statement yesterday

The signing ceremony was hosted by Teraju. Also present at the event were representatives from LBU, the project delivery partner for the development and upgrading of the Pan Borneo Highway.

CGC provides guarantees to SMEs with potentially viable businesses but lack the collateral and track record to obtain financing.

Contracts and tenders for the multibillion 1,073km Pan Borneo Highway have already been awarded.

Phase one of the Sarawak side of the highway is estimated to cost about RM16 billion while phase one in Sabah involves a total cost of RM12 billion, according to Works Minister Datuk Seri Fadillah Yusof. — TMR