Malaysia

Putrajaya approves 19 Pan Borneo Highway packages worth RM12.7 bil

No need now for private finance initiative to complete overall project, says senior works minister

Updated 4 years ago · Published on 27 May 2022 4:36PM

Putrajaya approves 19 Pan Borneo Highway packages worth RM12.7 bil
Senior Works Minister Datuk Seri Fadillah Yusof (third left) says the federal government is no longer planning to get funding through a private finance initiative for the remaining 19 packages of the Sabah Pan Borneo Highway Project. – REBECCA CHONG/The Vibes pic, May 27, 2022

by Rebecca Chong

SANDAKAN – The federal government has approved the remaining 19 packages of the first phase of the Sabah Pan Borneo Highway Project, to be funded by Putrajaya itself.

Federal Senior Works Minister Datuk Seri Fadillah Yusof said that the 19 packages have been passed and will be implemented through allocations from the federal government, but the total amount has yet to be finalised.  

“Everything has been approved. We are now in the process of procurement and designing before we can finalise the amount of allocation. But so far, the remaining 19 packages are estimated to cost about RM12.7 billion,” he said.  

Fadillah said this at a press conference during the FTRoadpedia programme organised by the Works Ministry, where he visited Package 27 of the Pan Borneo Highway Project from Mile 32 here to Kg Lot M.  

He said that the ministry hopes that the construction of the remaining 19 packages will start this year, but the process is still being finalised by the Finance Ministry, specifically on the method of implementation and procurement.  

“We are still determining the method of implementation. Before this, we used a project delivery partner, but when the government shifted, the method was abolished. Right now, it is being implemented by the Sabah Public Works Department.  

“So for the remaining 19 packages, the method of implementation is still being finalised,” he said.  

The remaining 19 packages are part of a total of 35 packages in the first phase of the Pan Borneo Highway Project, with 15 currently under construction, and one approved earlier.  

Fadillah said this means that there is no need for the government to get funding through a private finance initiative.  

Since last year, Sabah Works Minister Datuk Seri Bung Moktar Radin has been pushing the government to consider funding the remaining 19 packages via PFI.  

On April 28, Bung Moktar, who is also Sabah deputy chief minister, said the federal government had agreed on the matter and was waiting for final discussions on its implementation. 

The Pan Borneo Highway Project in Sabah has three phases involving a 1,236km stretch of road which costs about RM40.2 billion. The first phase covers 706km.  – The Vibes, May 27, 2022

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