KUALA LUMPUR: The Works Ministry has denied claims that late payments were the reason the Pan Borneo Highway project failed to meet its original construction schedule.
Deputy Minister Datuk Seri Dr Ahmad Maslan said the delays were instead attributable to several factors, including contractors' performance on site and the termination of the project delivery partner agreement in 2019.
He said other factors affecting the project's implementation included weather conditions, land acquisition challenges, utility relocation issues, the Covid-19 pandemic and project governance.
He said the ministry had implemented and was continuing to implement various mitigation measures to ensure the mega project could be completed as scheduled.
"These include regular monitoring through a steering committee or task force to oversee project implementation and contractors' performance, identify delays and implement appropriate solutions to address emerging issues.
"The ministry is also holding regular engagement sessions and meetings with relevant government agencies and private-sector stakeholders, including utility and telecommunications providers.
"In addition, senior ministry officials frequently visit Sabah and Sarawak to monitor progress and ensure the projects continue to move forward, with issues affecting on-site works examined and addressed promptly.
"The ministry has also issued stern warnings to underperforming contractors, adding that firm action would be taken under the relevant contractual provisions if their performance did not improve," he said in reply to Datuk Wetrom Bahanda (KDM-Kota Marudu).
Wetrom had asked about the latest implementation status of the Pan Borneo Highway construction packages and the ministry's mitigation strategies to expedite the appointment of rescue contractors to complete the remaining sections facing significant delays.
The Sabah Pan Borneo Highway project spans 706km and is divided into 35 work packages, comprising 16 packages under Phase 1A and 19 under Phase 1B.
Four work packages have been fully completed, while the remaining 31 are expected to be completed in stages.
The entire project is targeted for completion in 2030, following the signing of the final package, WP35, this year.
"To date, physical progress has reached 89.01 per cent for Phase 1A and 23.96 per cent for Phase 1B, which is still at an early stage.
"Another nine work packages under Phase 1A are expected to be completed by late this year until early next year," said Ahmad.
On payment records, he said financial disbursements for Phases 1A and 1B were broadly in line with physical progress.
"Under Phase 1A, the scheduled physical progress was 96.23 per cent, while actual progress stood at 89.54 per cent, a shortfall of about seven percentage points. With actual physical progress at 89.54 per cent, financial payments stood at 88.78 per cent.
"For Phase 1B, which is still at an early stage, scheduled physical progress was 24.76 per cent, while actual progress stood at 25.53 per cent.
"In terms of financial payments, the scheduled rate was 20.73 per cent, but we have already paid 22.11 per cent. Therefore, there is no issue with payments," he said in response to a supplementary question from Wetrom.
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