Federal Govt to decide this month if it should take over Pan Borneo Highway project


  • Nation
  • Friday, 09 Aug 2019

KUCHING: The Federal Government will decide this month whether the Works Ministry will take over the Pan Borneo Highway project in Sarawak from project delivery partner (PDP) Lebuhraya Borneo Utara Sdn Bhd (LBU).

"For the moment, the Pan Borneo in Sarawak is still under the supervision of LBU.

"We have not made a decision to take over yet. That (is something) you will know before this month is over, " Works Minister Baru Bian told reporters at Kuching International Airport on Friday (Aug 9).

He said the principle behind taking over the project, as reported previously, was to reduce its cost.

"In the contract agreement, there are fees of about 5.5% of the cost of the project.

"There is a possibility that this could be reduced if the ministry takes over, " he said.

Baru also said the project would not be delayed, should the ministry take over.

"We've made it clear that there should be no disruption. The packages should proceed and there should be no delay.

"If there is any delay, the contractors themselves should be blamed. I don't see any reason why progress should be delayed, " he said.

He added that the state Public Works Department would be the superintending officer of the project if the ministry takes over.

"They are professional and we have confidence in them, " he said.

Sarawak's biggest infrastructure project, the Pan Borneo Highway, was awarded in 11 work packages and expected to be completed in 2021.


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