KUALA LUMPUR: There have been no delays in payments to contractors working on the Pan Borneo Highway project in Sabah that could affect construction progress, says Deputy Works Minister Datuk Seri Dr Ahmad Maslan.
He said payments for Phase 1A and Phase 1B were made based on work completed, with disbursements keeping pace with, or exceeding, scheduled levels.
“Therefore, there is no issue with payments,” he told the Dewan Rakyat on Monday (Oct 19).
Ahmad said Phase 1A had achieved 89.54% physical progress, against the scheduled 96.23%, while financial disbursements stood at 88.78%.
For Phase 1B, actual physical progress was at 25.53%, ahead of the scheduled 24.76%, he said.
Financial disbursements for the phase stood at 22.11%, compared with the scheduled 20.73%.
Ahmad was replying to Datuk Wetrom Bahanda (KDM-Kota Marudu), who asked for the latest status of the Pan Borneo Highway project and measures to address delayed sections.
The 706km Pan Borneo Highway Sabah project is divided into 35 work packages under Phase 1A and Phase 1B.
Four packages have been completed, while the remaining packages are expected to be completed in stages by 2030.
Ahmad acknowledged that contractor performance remained a concern and said the ministry had stepped up monitoring to keep the project on track.
He said monthly meetings chaired by the Sabah State Secretary and the Works Ministry secretary-general were held to review progress and address issues affecting construction.
The ministry has also strengthened its steering committees and task forces to monitor contractors’ performance, identify causes of delays and work out solutions, he added.
Other challenges affecting the project include land acquisition, utility relocation, weather conditions, project governance issues, the Covid-19 pandemic and the termination of the project delivery partner.
Ahmad said stern warnings had been issued to underperforming contractors, with action to be taken under contractual terms if there was no improvement.
He added that the dual-carriageway crossing Kota Marudu is a state road and not part of the Pan Borneo Highway alignment.
