Sabah Pan Borneo Highway Phase 1A records 89.54% progress
KUALA LUMPUR: Construction of the Sabah Pan Borneo Highway Phase 1A is nearly seven percentage points behind schedule, with contractor performance issues among the challenges affecting progress, the Dewan Rakyat was told today.
Deputy Works Minister Datuk Seri Ahmad Maslan said physical progress across the 15 work packages under Phase 1A stood at 89.54%, compared with the scheduled 96.23%.
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He acknowledged that some contractors were facing performance problems, prompting the ministry to step up monitoring.
“There are contractor issues, yes, I do not deny that. That is why we are carrying out close monitoring, with meetings held every month,” he said.
Ahmad was responding to a supplementary question from Datuk Wetrom Bahanda (KDM-Kota Marudu), who asked whether delayed payments, a lack of contractor expertise and insufficient machinery were contributing to construction delays.
Wetrom said several stretches between Kota Marudu and Kudat appeared to have little construction activity.
“Whenever we pass through those areas, sometimes we do not see anyone working or any machinery operating,” he said.
Ahmad rejected suggestions that delays in government payments were responsible for the situation.
He said financial progress for Phase 1A had reached 88.78%, broadly in line with the physical progress recorded.
“Work is at 89%, payment is at 88%. So, there is no problem,” he said.
For Phase 1B, physical progress stood at 25.53%, ahead of the scheduled 24.76%, while financial progress had reached 22.11%, exceeding the planned 20.73%.
Ahmad said the ministry had intensified monitoring, with monthly meetings chaired by its secretary-general, who also visited Sabah regularly to oversee the project.
He warned that contractors who failed to improve their performance could face action.
“If there is no change, firm action will be taken based on the clauses of the contract,” he said.
Earlier, Ahmad said the 706km Sabah Pan Borneo Highway project comprised 35 work packages, four of which had been completed.
Another nine packages under Phase 1A are expected to be completed by the end of 2026 or early 2027, while the remaining packages are scheduled for completion in stages up to 2030.
In another supplementary question, Kamal Ashaari (PN-Kuala Krau) asked whether weaknesses in project monitoring had contributed to the prolonged delays.
Ahmad said the termination of the Project Delivery Partner (PDP) arrangement on Sept 22, 2019, and the subsequent transition to a conventional implementation model were among the factors affecting progress.
“When there was a change of government, the PDP arrangement was terminated.
“The termination caused delays in the project’s implementation because it involved other transition processes,” he said.
He added that contracts for the 15 Phase 1A work packages were only awarded in 2021, while the Covid-19 pandemic, land acquisition and utility relocation had further affected progress.
Ahmad said the Sabah Land and Survey Department had only seven valuers, prompting the ministry to engage private valuers to expedite land acquisition.
“That is why we decided to engage private valuers so that the necessary work could be carried out more quickly,” he said.
The Auditor-General’s Report 2/2026, tabled in the Dewan Rakyat on Oct 5, found that nine of the 31 unfinished Sabah Pan Borneo Highway work packages were classified as troubled projects, while another 13 were behind schedule.
During the winding-up debate on Oct 7, Works Minister Datuk Seri Alexander Nanta Linggi said site readiness had reached 99.79% for Phase 1A and 79.43% for Phase 1B.
He also said the ministry had directed relevant officers to undergo contract management training and would continue site inspections through the Sabah Pan Borneo Highway Steering Committee.