Covid-19, contractors and more: Minister explains Sabah's Pan Borneo project woes

 

Works Minister Alexander Nanta Linggi attributed delays in the Sabah Pan Borneo Highway project to changes in its implementation model, the Covid-19 pandemic, land acquisition and utility issues, and contractor performance.

His explanation came after the Auditor-General’s Report highlighted prolonged delays and weaknesses in the project, resulting in 706km still being under construction for more than a decade.

According to Nanta (above), the change from the Project Delivery Partner (PDP) model to a conventional procurement method in 2019 was among the factors that delayed the project.

“The termination of the PDP model in 2019 also required a new procurement process before the 15 Phase 1A contractors could be awarded contracts in 2021,” he said on Facebook yesterday.

The 2026 Series 2 Auditor-General’s Report, released earlier this week, identified several weaknesses in the project, including shortcomings under the PDP model, failure to ensure sites were ready before construction began, contractor and consultant performance, design changes and utility relocation.

These issues have contributed to delays, with only four of the project’s 35 work packages (WP), or 11.4 percent, completed as of March 31.

The remaining 31 packages, worth RM16.32 billion, were still under implementation, with nine classified as “sick” projects, 13 behind schedule and nine ahead of schedule.

The prolonged delays have pushed the total contract cost for Phase 1 up by RM1.05 billion, from RM17.91 billion to RM18.96 billion.

Additionally, the report also flagged multiple instances of non-compliance with laws, regulations and guidelines.

Among them were work variation orders exceeding RM1 million that were approved by a committee whose authority was capped at RM1 million, instead of being referred to the Works Ministry Procurement Board or the Treasury secretary-general as required.

‘Site readiness improved’

Nanta explained that the increase in Phase 1A costs was due to extensions to the project period, changes in scope, construction contract prices, as well as unresolved land and utility issues.

However, he added that site readiness had improved significantly, with 99.79 percent of sites for Phase 1A now free of obstructions, compared with 96.8 percent for WP09 and 79.43 percent for Phase 1B.

“(Meanwhile) physical progress for Phase 1A currently stands at 89.01 percent, while WP09 has reached 37.58 percent and Phase 1B 23.96 percent,” Nanta said.

On non-compliance with regulations, Nanta said the ministry had directed relevant officers in the Sabah Public Works Department and the ministry to attend administration and contract management courses.

He said the training was aimed at strengthening their skills in preparing Bills of Quantities, determining costs and preparing contract documents.

“Additionally, the Sabah Pan Borneo Highway Steering Committee, established in November 2024, continues to strengthen monitoring through its site visit programme.

“The Sabah chief minister has also recommended that the committee be co-chaired by the Works Ministry secretary-general and the Sabah state secretary to improve coordination among state agencies,” Nanta said. - Mkini