Malaysia’s state government of Melaka has terminated a $10.5 billion worth agreement with a local developer who partnered with three Chinese companies over a sea reclamation project involving the building of a mixed harbor development, including three man-made islands, in the strategic Malacca Strait, reported Caixin.
The termination was due to the expiration of the agreement, which was signed in 2017 and expired on Oct. 3. However, the local developer, KAJ Development Sdn. Bhd., “was found to have failed in completing the project,” the Melaka government said in a statement on Monday, according to local newspaper, Harian Metro.
The 609-acre infrastructure project, known as Melaka Gateway, was expected to be completed by 2025, consisting of port facilities, industrial parks, tourism and entertainment sites. Melaka government’s press office confirmed the termination of the agreement to Caixin over a phone call.
The project has long been seen as part of China’s Belt and Road initiative in Malaysia and supported by the former Malaysian government headed by Najib Razak from 2009 to 2018.