MalaysiaPan Borneo Highway Project Delayed
The Pan Borneo Highway project in Sabah remains incomplete 10 years after planning, with costs escalating by over RM1 billion. Variation orders worth RM513.99 million were approved beyond the authorised approval limit, and 19 packages started work before their environmental impact assessment reports were approved.
Global Newsflix 2 min read
The Auditor-General's report has flagged multiple weaknesses in the planning and execution of the Pan Borneo Highway project in Sabah, as well as violations of guidelines and regulations.
As of March 31, the project remained incomplete 10 years after planning, despite its management changing hands from the delivery partner to the works ministry in September 2019.
The report found that work sites were not fully prepared when the project began, with RM144 million in compensation still unpaid and 99 structures yet to be demolished under Phase 1A of the project.
Under Phase 1B, RM84 million in compensation remains owed while 3,360 structures need to be demolished.
The project's cost has increased by RM1.05 billion, or 6%, due to Phase 1a, which saw costs increased to RM11.323 billion, RM987 million or 9.5% higher compared to the original project cost of RM10.336 billion.
Only four work packages, totalling RM567 million in original costs, have been fully completed while the remaining 31 work packages, valued at RM16.319 billion, are still in progress.
The Auditor-General highlighted weaknesses in planning, site readiness and contract management as the primary root causes behind the project's massive delays and cost growth.
Key facts
- The Pan Borneo Highway project in Sabah remains incomplete 10 years after planning.
- The project's cost has increased by RM1.05 billion, or 6%.
- Variation orders worth RM513.99 million were approved beyond the authorised approval limit.
- 19 packages started work before their environmental impact assessment reports were approved.
Three perspectives
Neutral
The project's delay and cost escalation have raised concerns about the management and execution of the project. The government will need to review and address the weaknesses in planning, site readiness and contract management to ensure the project's completion. The public will be watching the progress of the project closely.
Positive
The completion of the Pan Borneo Highway project will enhance connectivity and access, especially for rural communities in Sabah. The project has the potential to boost economic and social activity along the project's corridor.
Negative
The delay and cost escalation of the project have resulted in significant financial losses and inconvenience to the public. The weaknesses in planning, site readiness and contract management have raised questions about the government's ability to manage large-scale infrastructure projects.
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