Pan Borneo contractors to remain in new model


The government will not terminate the existing Pan Borneo Highway (PBH) work package contractors (WPCs) even if it decides to replace the mega-project’s project delivery partner (PDP) arrangement with a turnkey model.

At present, the Works Ministry is still evaluating all options to ensure that the remaining construction works for the expressway would be carried out in a cost-efficient manner.

Works Minister Baru Bian said the direction of the PBH will be announced as soon as the government finalises their study on the best mechanism for the project and arrives at a decision.

The minister said if the government decides to switch the project’s PDP, the ongoing WPCs will not be removed from the project.

“The government has not made any final decision as to whether or not it is changing the current PDP model for the PBH project in Sabah and Sarawak.

“Nevertheless, the implementation of the project model is being re-evaluated from various aspects, especially in light of current cost overruns.

“This is to ensure that government allocation can be optimised as best as possible and does not interfere with the implementation of the project,” Bian told the Dewan Rakyat yesterday.

He was responding to a question by Bandar Kuching MP Dr Kelvin Yii Lee Wuen who asked on the government’s plan to replace the PDP model with turnkey contractor, and benefits to be derived from the changes.

Last week, Deputy Works Minister Mohd Anuar Mohd Tahir said the Cabinet is expected to announce a decision on the RM29 billion PBH.