Sabah Pan Borneo project: Figures cited by AG report doesn't reflect actual progress - Sabah DCM

KUDAT: Deputy Chief Minister Datuk Seri Dr Joachim Gunsalam asserts that the 11.4 per cent completion rate for the Sabah Pan Borneo Highway, as reported by the Auditor-General, does not accurately represent the real progress made on the project. The figure only accounts for the number of fully turned-over packages, which represent just four out of the 35 packages in Phase 1.

While this figure is accurate in terms of handed-over constructions, Dr Joachim clarifies that the actual physical progress of the highway is notably higher, with some alignments reaching between 90 and 93 per cent completion. He stated that construction works continue to advance positively, with eight packages, spanning 179 kilometers, set to be opened for motorists before the end of 2026.

Dr Joachim also addressed the issue of the variation order (VO), which is reportedly above RM514 million. He explained that the approval for these additional costs falls under the purview of the federal Works Ministry and Finance Ministry, rather than the state government. The state government's Public Works Department (JKR) acts solely as the technical implementing agency and lacks the authority to approve the VO.

The VO was deemed necessary due to technical factors unique to Sabah, such as its hilly topography, slope stability challenges, and varying swampy and peat soil conditions, which change every one to 1.5 kilometers.

Dr Joachim, while acknowledging the audit findings, expressed satisfaction with the state's response to the report's criticisms. He commended the positive collaboration between the state and federal governments in addressing these issues. Regarding project delays, Dr Joachim attributed them to several factors, including the termination of the previous project delivery partner (PDP) model, which necessitated a transition to the conventional method and reliance on annual federal allocation approvals.

The Covid-19 pandemic in 2021 also contributed to delays, as most contractor appointments for new packages were only finalized between February 2024 and January 2026. The land acquisition process has been time-consuming, and although the government did not pursue a stringent approach, they allowed landowners to seek compensation for any issues arising from land acquisition.