Sabah Pan Borneo Highway Phase 1B Nears Contractor Selection with Q3 Completion Target

Image: Bernama

Earlier this week, Dewan Rakyat was informed that 15 out of 19 work packages for Phase 1B of the Pan Borneo Highway Project in Sabah are in the final stages of an open tender evaluation. 

Datuk Seri Alexander Nanta Linggi announced that Letters of Acceptance (LOA) for these packages are anticipated to be issued to selected contractors in the third quarter (Q3) of this year.  Four contractors have already been appointed to undertake construction work on four of the project’s packages, covering a total distance of 366.8 kilometers. 

The project, with an estimated development cost of RM13.99 billion, is being funded through a hybrid financing method. This includes allocations from the Development Expenditure Budget and sukuk or bond issuances by DanaInfra Nasional Berhad. 

Nanta stated that RM400 million has been allocated for preliminary works in 2024, based on current financial projections. He provided this information in response to a query from Isnaraissah Munirah Majlis (Warisan-Kota Belud) regarding the latest procurement types and funding sources for the project. 

Datuk Seri Alexander Nanta Linggi (second from right).

Addressing the status of Work Package 9, which covers the route from Serusop to Pituru and has experienced delays, Nanta explained that the delays were to ensure that qualified and capable contractors are selected. 

The final evaluation for this work package is ongoing, with the LOA expected to be issued in Q3 of this year. The project is slated for completion within three years following the issuance of the LOA.

Nanta emphasised the significance of the Sabah Pan Borneo Highway project, describing it as a high-impact initiative and a priority for the Works Ministry.  The ministry is committed to ensuring the project's timely implementation to enhance Sabah’s federal road infrastructure network.

In response to a supplementary question from Datuk Seri Dr. Ronald Kiandee (PN-Beluran) about why the Pan Borneo Highway project in Sarawak is progressing faster than in Sabah, Nanta attributed the delays to several factors, including land acquisition issues, utility relocation, and contractor selection challenges. KR

Source: Bernama