Sabah Pan Borneo Highway progress higher than 11.4% in A-G report, says DCM

The Sabah Pan Borneo Highway project has progressed at a rate higher than 11.4%, despite the recent Auditor-General's Report suggesting otherwise, stated Sabah Deputy Chief Minister Dr Joachim Gunsalam. The 11.4% figure, according to Dr Gunsalam, only accounts for the number of fully handed-over packages, which is just four out of the 35 packages under Phase 1 of the project.

While the handover rate is accurate, it does not reflect the overall physical advancements made on the highway. Dr Gunsalam highlighted that some alignments of the project have achieved physical progress rates of 90%-93%. He noted that eight packages covering 179km are scheduled to be opened to motorists by the end of the year, indicating positive construction progress.

Regarding the Variation Order (VO) costing over RM514 million, Dr Gunsalam clarified that the responsibility for approving the additional cost lies with the federal works ministry and finance ministry, rather than the state government. The state government views the audit findings positively and has been working towards addressing the issues raised, aided by the strong collaboration between state and federal authorities.

Dr Gunsalam explained that the delays in the project were due to several factors, including the termination of the previous Project Delivery Partner model, the impact of the Covid-19 pandemic, the time-consuming land acquisition process, and challenges faced by some contractors.