Guan Eng explains calculation in spat over RM22 bil Pan Borneo highway

Finance Minister Lim Guan Eng says detractors are intentionally misleading the public about the cost of Sarawak’s portion of the Pan Borneo Highway.

PETALING JAYA: Lim Guan Eng today explained why the Project Delivery Partner (PDP) model for Sarawak’s portion of the Pan Borneo Highway cost RM21.9 billion, a figure disputed by the opposition.

The finance minister said other costs incurred in the construction, including land reclamation, had not been mentioned by those questioning the figure.

The sum, he said, also included allocations set aside for consultants, an independent engineer and contingency plans.

Lim went on to note that detractors had questioned how the government was able to save RM3.1 billion by cancelling an agreement with the PDP of the highway and claiming that the construction cost was RM16.5 billion.

“They are intentionally misleading the public by stating that the total cost of the project is RM16.5 billion, without taking into account other costs.

“The estimated total cost of the Sarawak portion of the Pan Borneo Highway is actually RM18.8 billion, which was presented to the Cabinet last year.”

A few days ago, former works minister Fadillah Yusof hit out at Lim over the claim that Putrajaya would save RM3.1 billion by cancelling an agreement with the PDP.

Fadillah described the statement by Lim that the project cost would come down to RM18.8 billion from RM21.8 billion if it was implemented by the government in a conventional way, as “misleading and deceitful”.

He said the original target cost for the project was capped at RM16.488 billion and not RM21.9 billion, with a targeted delivery date of end 2021. - FMT