Decision End of August on Taking Over Pan Borneo Highway in Sarawak
A decision whether to cancel the project delivery partner (PDP) model for the Pan Borneo Highway in Sarawak would be made at the end of this month, says Works Minister Baru Bian.
He said the Pan Borneo Highway portion in Sarawak is still under the supervision of the PDP — Lebuhraya Borneo Utara Sdn Bhd (LBU).
LBU was appointed by the previous government to manage the RM16.49 billion highway stretch.
It was reported that Putrajaya had decided to replace the PDP model in favour of a turnkey-contractor model.
Baru said there was a possibility that the project cost could be reduced if the works ministry takes over the Sarawak portion of the highway.
Under the contract agreement, a fee of 5.5% of the cost of the project must be paid to the PDP. “This amount may be reduced if the works ministry takes over,” he said.
Baru gave an assurance that there would be no disruption of the project.
“I don’t see any reason for delays. If there is any, then the contractors will have to take the blame,” he said.