Sabah Pan Borneo Highway: Only 4 of 35 packages complete after a decade

The auditor-general's report has highlighted significant issues with the execution and planning of the Pan Borneo Highway project in Sabah, which has been unfinished for 10 years despite shifting management between a delivery partner and the works ministry. As of March 31, the project still lacked full preparation at work sites, with RM144 million in unpaid compensation and 99 structures still to be demolished in Phase 1A.

In Phase 1B, RM84 million in compensation remained owed, while 3,360 structures needed demolition. The report also found that RM513.99 million in variation orders exceeded the approved limit, and 19 project packages initiated work before receiving environmental impact assessments. Disputes over 13 items under 10 variation orders amounted to RM60.87 million.

The government had to cover RM32.95 million in cost differences for preliminary works, insurance, and performance bonds, and made some RM164.64 million in disordered payments due to delays in contract document completion. The A-G recommended better Standard Operating Procedures and more monitoring of the project's planning and execution.

In contrast, the Pan Borneo Highway in Sarawak is nearing completion, with 10 work packages finished and the Lambir package 99.9% done. Overall, the project has stimulated economic and social activity but still faces weaknesses in management and contract governance, with RM1.78 billion in claims pending from four utility companies and two rest stops remaining unused.