Kuala Lumpur:The Ministry of Works (KKR) is addressing the findings from the 2026 Auditor-General's Report concerning Phase 1 of the Sabah Pan Borneo Highway project to enhance project delivery and implementation of federal government development initiatives.
According to BERNAMA News Agency, Works Minister Datuk Seri Alexander Nanta Linggi highlighted issues noted by the National Audit Department, such as project delays, increased costs, planning weaknesses, and regulatory non-compliance.
As of August 25, only four out of the 35 work packages for Phase 1 of the Sabah LPB have been completed. The remaining packages are in progress, with Phase 1A at 89.01% completion, WP09 at 37.58%, and Phase 1B at 23.96%.
Project delays were attributed to several factors, including a shift from the Project Delivery Partner model to a conventional method, the COVID-19 pandemic, land acquisition challenges, utility relocation, and contractor performance issues. The termination of the PDP model in 2019 required a new procurement process, leading to the awarding of 15 Phase 1A contracts in 2021.
The cost increase for Phase 1A resulted from extending the project period, scope changes, construction contract prices, and unresolved land and utility issues. Current site readiness stands at 99.79% for Phase 1A, 96.8% for WP09, and 79.43% for Phase 1B.
The KKR has directed relevant officers in the Sabah Public Works Department and the ministry to attend administration and contract management courses to improve their skills in preparing Bills of Quantities, cost determination, and contract documentation. These courses are provided by the Construction Industry Development Board Malaysia and JKR Malaysia's Centre for Excellence in Engineering and Technology.
Furthermore, the Sabah LPB Steering Committee, established in November 2024, continues to enhance monitoring through site visits. Sabah Chief Minister Datuk Seri Hajiji Noor has suggested the committee be co-chaired by the KKR secretary-general and the Sabah State Secretary to improve coordination among state agencies.