Project to be restructured
KOTA KINABALU: The Ministry of Infrastructure Development will re-evaluate contracts awarded for the Pan Borneo Highway project and restructure its management.
Minister Datuk Peter Anthony said thorough checks would be conducted to ensure contractors deliver as promised, adding that improvements would be made, if necessary.
“At the ministry level, we are looking at ways to restructure because we see that the Public Works Department (JKR) has no role in monitoring the Pan Borneo project, which is odd.
“Instead, the project is overseen completely by appointed consultants, which cost the government more than RM700 million and a few hundred millions more for land compensation.
“To look into these matters, the ministry has instructed for a committee to be established,” he said at the JKR Hari Raya open house yesterday.
Peter said the committee would replace previously appointed consultants to monitor the construction of the Pan Borneo Highway project in the state.
The committee, comprising representatives of the department and related agencies from Peter’s ministry and the State Ministry of Finance, will also restructure the implementation of the project, particularly in awarding contracts to contractors.
“So far, the Pan Borneo project continues, but it (its implementation) will be refined.
“It is also possible that we will evaluate the contracts given to the contractors currently doing the construction if there are events of ‘leakage or unreasonable prices’ we will make improvements to the contract,” he said.
Peter emphasised that whatever improvements made were aimed at preventing the government from spending unnecessarily on the project, adding that after evaluations were done, the government was expected to save approximately RM1 billion and the Pan Borneo Highway should still be completed as scheduled.
Apart from that, he said the compensation for landowners’ involved in land acquisition for the project was too high involving billions of ringgit, when the project could use existing roads.
“Why should we waste people’s money to buy land adjacent to the existing road?
“(In the restructuring of the project) we will ensure that the existing road is used to reduce costs,” he said, adding that the restructuring of the project is expected to save RM1 billion.
Furthermore, action will be taken against contractors who do not comply with deadlines, including terminating contracts and replacing them.
“We do not deny that there are delays due to reasons such as contractors’ financial capacity, while some of them also face problems like land levy.
“When we are trying to improve, we will ensure contracts are given to contractors equally. As much as possible, we want to involve local contractors in this project and others to come.
“We are confident local contractors possess the expertise, especially those who have been in the industry for over 10 or 15 years but were never given an opportunity.
“We also know contractors that were hired previously are mostly amongst the same circle, and those who have involvement with certain parties. We want to ensure they all stand an equal chance,” he said.
The first phase of the Pan Borneo Highway Project in Sabah involving 706km was launched in 2016 with 35 work packages worth RM12.8 billion.