‘Costs saved from PDP deal termination to only be known after project completion’

KUCHING: The actual cost savings from the termination of Pan Borneo Highway’s Project Delivery Partner (PDP) agreement could only be known after the completion of the project, said Works Minister Datuk Seri Fadillah Yusof.

In this respect, he noted that there were two different figures given by the former Finance Minister and also from the former Works Minister.

“The previous Finance Minister stated that there were savings of RM3.1 billion, while the previous Works Minister said RM1.2 billion – I am not sure which figure is more suitable. However the implementation did not take into account the effect on the project administration and contractchange, the capacity improvement and technical expertise, and also claims following the PDP termination,” he said in the Dewan Rakyat yesterday, in responding to a question from Igan MP Ahmad Johnie Zawawi about the amount saved by the government following the termination of PDP agreement.

Fadillah also said the Pan Borneo Highway project was at 52 per cent completion stage, as at July this year.

The Pakatan Harapan-led government terminated the PDP agreement in September last year, claiming that it was to save the cost of the project. The PDP for the Sarawak portion of the highway was Lebuhraya Borneo Utara Sdn Bhd.

On an additional question from Ahmad Johnie regarding how the Movement Control Order (MCO) and the Covid-19 pandemic had affected the mega project, Fadillah said his ministry had a specific approach to find ways in expediting and completing the project on time without incurring additional costs.