KUCHING (Aug 25): The actual cost savings from the termination of Pan Borneo Highway’s Project Delivery Partner (PDP) agreement can only be known after the project is completed, said Minister of Works Datuk Seri Fadillah Yusof.
He noted that there were two differing figures given by the previous Finance Minister and Works Minister.
“The previous Finance Minister stated that there was a savings of RM3.1 billion, while the previous Works Minister said RM1.2 billion; I am not sure which figure is more suitable.
“However the implementation did not take into account the effect on the project administration and contract change as well as the capacity improvement and technical expertise, and also claims following the PDP termination,” he said at the Dewan Rakyat today.
The minister was responding to a question from Igan MP Ahmad Johnie Zawawi on the amount saved by the government following the termination of PDP agreement.
He also informed that the Pan Borneo Highway project is 52 per cent completed as of July 2020 and is expected to be completed this year, a year extended since PDP agreement was terminated.
Pakatan Harapan government terminated the project delivery partner (PDP) agreement in September last year, with the rationale of the decision being cost saving. The PDP for the Sarawak portion of the highway was Lebuhraya Borneo Utara Sdn Bhd (LBU).
On an additional question from Ahmad Johnie regarding how the Movement Control Order (MCO) and the Covid-19 pandemic has affected the mega project in terms of costs and duration for completion, Fadillah said that the ministry will have a specific approach to find ways in expediting and completing the project on time without incurring additional costs.
He explained that not only was Pan Borneo affected, but other government projects as well, as workers either cannot work because of positive cases found or because the construction sites were closed.
“Overall we have given an automatic extension of three months on all government projects. As for others, they have to apply and state why the project is affected,” he said.