KUALA LUMPUR: The former Pakatan Harapan government’s decision to terminate Lebuhraya Borneo Utara Sdn Bhd (LBU) as its project delivery partner (PDP) in the Pan Borneo Highway project will be upheld by the present Perikatan Nasional government.
In a parliamentary written reply dated July 14, the Works Ministry said it respected Pakatan’s decision to terminate LBU as its PDP, which took effect on Feb 20 this year.
“The Perikatan government will respect the previous government’s decision to change the project delivery method for the Pan Borneo Highway project in Sabah and Sarawak.
“Following that, continuous efforts to improve the delivery method is currently being implemented to overcome identified weaknesses, ” said the Works Ministry.
“These are steps taken to ensure the smooth implementation and continuity of the Pan Borneo highway project in Sabah and Sarawak, ” it said, adding that the project is the catalyst for development in East Malaysian states.
The Works Ministry was replying to former Works minister and Selangau MP Baru Bian, who asked whether the government would follow through with Pakatan’s decision to terminate LBU as its project delivery partner on Feb 20.
Meanwhile, the Works Ministry said that till June this year, the Sabah component of the highway was 32% completed while Sarawak was 52%.
Last Feb, Baru Bian said the government would save an estimated RM2.87bil by taking over the Pan Borneo Highway project in Sarawak from LBU.
LBU received the PDP termination letter on Sept 20,2019. In Feb, LBU laid off more than 500 employees as a result.
With the Works Ministry's takeover coming into effect on Feb 20, the Public Works Department of Sarawak (JKR) was appointed as the superintending officer responsible for monitoring and supervising the project and managing contracts.
Under the PDP contract, the project was scheduled to be completed in June next year.
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
