Govt takes over Pan Borneo
KOTA KINABALU: The government is expected to take over the Pan Borneo Highway project in Sabah from Borneo Highway PDP Sdn Bhd as it has reached an agreement for new approaches to expedite a more environmentally friendly construction of the project in the state.
Chief Minister Datuk Seri Mohd Shafie Apdal said the matter had been discussed at length at the federal level with Finance Minister Lim Guan Eng and Works Minister Baru Bian.
"I think we have reached an agreement on certain approaches to ensure that we can cut (it) short. Managing how we can build a road without involving the private sector like PDP," he said after officiating at the International Conference on Heart of Borneo (HoB): Transcending Boundaries for a New Conservation Era and International Day of Forests 2019 event at the Magellan Sutera here yesterday.
"How can an entity like PDP, which is a private (company) managing billions of money? That is something, I think, we must be accountable," added the Chief Minister.
He stressed that government departments, such as the Public Works Department (JKR) and Finance Ministry, should be involved in the project in the future.
"Let's be transparent. We are not concerned about who's getting the job. What is important for us, the road is built so that the people can use it.
"More or less there will be new approaches as such to ensure that we can expedite it," Shafie said, adding that he hoped the latest methods can be implemented soon.
The Sabah government, led by its Infrastructure Development Ministry, is said to have submitted a proposal to take over the implementation of the Sabah portion of the Pan Borneo Highway project.
It is understood that the decision was made in light of cost overruns under the existing PDP structure and the decision is in line with the government's intention to stop awarding infrastructure projects through the PDP model, which contractors are not being incentivized to be cost-efficient.
Borneo Highway PDP Sdn Bhd (BHP) is currently the PDP for the 706km Sabah portion of the highway, whereas Lebuhraya Borneo Utara Sdn Bhd (LBU) is the PDP for the Sarawak portion.
BHP is 60%-owned by Warisan Tarang Construction Sdn Bhd, with the other 40% held by a joint venture between UEM Group and MMC Corp Bhd.