Nanta vows improved delivery after audit findings on Sabah Pan Borneo Highway

On August 25, it was revealed that only four out of 35 work packages in Phase 1 of the Sabah Pan Borneo Highway project had been completed, according to the Malaysian national audit department's findings. Works Minister Alexander Nanta Linggi emphasized the importance of these audit results and pledged to improve project delivery across all federal government development projects.

The audit highlighted delays, cost overruns, poor planning, and non-compliance with regulations as key issues plaguing the Sabah project. As of August 25, Phase 1A was 89.01% complete, WP09 at 37.58%, and Phase 1B at 23.96%. Project delays were attributed to factors such as a shift from a project delivery partner (PDP) model to a conventional method, the COVID-19 pandemic, difficulties in land acquisition, utility relocation, and contractor performance.

The termination of the PDP model in 2019 led to a new procurement process for Phase 1A, awarding 15 contracts in 2021. Linggi also noted that cost increases were due to extended project timelines, scope changes, fluctuating construction prices, and unresolved land and utility issues. The ministry's Sabah counterpart, the Jabatan Kerja Raya (JKR), has been instructed to attend training sessions focusing on administration and contract management led by the Construction Industry Development Board Malaysia and JKR Malaysia's Centre for Excellence in Engineering and Technology.

In response to these findings, the Sabah Pan Borneo Highway Steering Committee, formed in November 2024, has intensified monitoring through site visits. The committee is co-chaired by the ministry secretary-general and the Sabah state secretary to improve coordination among state agencies.