‘Works Ministry always uses open-tender system’

Two months after heading the Works Ministry, Selangau member of parliament Baru Bian has found himself surrounded by hot issues, including the government’s decision on the Pan-Borneo Highway Phase Two from Limbang to Lawas and toll abolishment, as promised in Pakatan Harapan’s manifesto. The New Straits Times Press’ KADIR DIKOH, NOR AIN MOHAMED

RADHI and NADIA HAMID talk to the minister on issues related to his ministry and politics

Q: Will the ministry make it compulsory to use the open tender system for upcoming projects?

Answer: The Works Ministry implements the open-tender system in line with regulations as well as guidelines set by the Finance Ministry. All government projects will be made through open tender and are subject to the ministry’s regulations to ensure transparency.

Q: Is there any plan to review and re-examine the implementation of the Pan-Borneo Highway project in Sarawak and Sabah?

A: The construction of 11 packages under the Pan-Borneo Highway Phase 1, spanning 786km from Teluk Melano to Miri, will continue based on contract terms agreed.

However, the mechanisms and implementation of the project are subject to review by the ministry and Finance Ministry. Q: The Pan-Borneo Highway is a Federal Government project, therefore, will the implementation of the project see cost reductions?

A: We are aware that the cost may increase, but we must also understand that all contracts and tenders were awarded and signed for by stakeholders. The only thing that can be done is appointing an independent consultant to review the cost of the project and this is what we are doing.

Secondly, we will discuss and negotiate with stakeholders on the matter. In fact, a meeting was held recently between stakeholders and the Finance Ministry to allow the government to re-evaluate how much the cost could be reduced.

Q: Have misappropriations, such as overpayment to contractors, taken place?

A: That is a separate issue. In my opinion, the appointment of an independent consultant was to review and reduce the cost of the project. Other issues such as fraud, abuse of power and other internal issues are beyond the scope of the independent consultant.

The ministry is open for discussions and ready to go to the ground. We are also ready to be the mediator to negotiate with stakeholders to ensure the PanBorneo Highway project will take place as planned as it is an important project for Sabah and Sarawak. Q: What is the priority for the Works Ministry in Sarawak; to complete the Pan-Borneo Highway project without assisting the state government in building coastal roads and providing RM500 million for the construction of Batang Lupar bridge?

A: As I have said before, the construction of 11 packages under the Pan-Borneo Highway project will remain.

The coastal road is under the purview of the state government. Therefore, the ministry is focusing on upgrading the federal roads.

However, the ministry is ready to assists in terms of expertise and technical advice in the implementation of infrastructure projects in the state.

The Federal Government has completed the construction of few bridges near the coastal roads, such as Sadong Bridge, Kota Samarahan Bridge and Pusar Bridge.

The construction of another three bridges near the federal roads — Rambungan Bridge, Batang Lupar Bridge and Igan Bridge — is subject to the 2019 Budget, which will be announced soon.

In view with the financial situation and based on the Finance Ministry’s circular dated June 29, we are subject to the guidelines.

If there is no Sales and Services Tax (SST) or agreement letters issued, the construction of the bridges will be temporarily suspended until the country’s financial situation is back on track.

Q: How many cases of misappropriation and abuse of power were detected in the Works Ministry after you took over? A: None, but if there is any, we will investigate. Q: As a ministry that receives a big allocation, how do you ensure transparency is practised so that there is no misappropriation?

A: The ministry received about RM2 billion and RM3.8 billion for operating budget and development budget respectively.

To ensure the budget allocated is properly spent, the ministry provides a work procedure manual and standard operating procedure manual that outlines the required documents before the interim payment or one-off payment is made.

The ministry has updated its payment process workflow chart to avoid misappropriation or abuse of power among officers and staff.

The ministry has provided the officers and staff directly involved with the payment process with training and financial-related courses so that the probability of non-compliance is avoided, or at least, minimised.

Q: On toll collection, how much had been collected nationwide from 2010 to last year?

A: The collection from 2010 to last year was at RM42 million. The collection according to year was RM4.2 million in 2010; RM4.54 million (2011); RM4.82 million (2012); RM5.02 million (2013); RM5.23 million (2014); RM5.47 million (2015); RM6.29 million (2016) and RM6.43 million last year.

Q: How is the toll collection used? From the total collected, how much goes for maintenance and dividends for shareholders?

A: From the total, between 20 and 25 per cent was for operation and maintenance costs, and 20 per cent to 30 per cent for upgrading along highways.

Another 45 per cent collected was for debt repayment with the bank or sukuk or other liabilities. The remaining was for dividend to the shareholders (depending on the ability of the company and if there is profit).

Q: How much will toll compensation cost? Damansara member of parliament Tony Pua said the amount would cost far less than RM400 billion, as mentioned by you recently? A: The estimated cost (of RM400 billion) was based on a report by the Performance Management and Delivery Unit (Pemandu) in 2010, which stated the cost to be at RM383.3 billion.

The amount was expected to increase to RM400 billion after taking into account a few recently completed highways after 2010, such as the Second Penang Bridge, KL-Kuala Selangor Expressway (Latar) and East Coast Expressway (LPT2).

However, the ministry has no objection to discuss with the Finance Ministry the calculation and mechanism used by Pua on this matter.

Q: From your point of view, will the country achieve the “toll free” goal and, at the same time, prevent traffic congestion?

A: The government is researching the abolishment of toll collection, which will be held in stages. Under the concession agreements, the concession period for nine highways will expire within 10 to 15 years.

Besides that, there are a few highways that have long concession period, such as West Coast Expressway, which will end in 2063 (60-year concession period)

As a responsible government, we must respect the terms and conditions of the agreed concession agreement, including on toll rates, concession periods and compensation payments.

During the implementation of highway projects with toll, the government had considered aspects, such as providing access options to road users, the government’s financial stability, economic development through private sector investment, as well as highway quality and standards.

Moving in this direction, there is a need to provide efficient public transport and improve the road infrastructure, especially in the Klang Valley.