Pan Borneo Highway contracts to be honoured, says report

KUALA LUMPUR (July 21): Putrajaya will honour all contracts linked to the RM29 billion, 2,325km Pan Borneo Highway mega project even as the government endeavours to shave the price tag, Works Minister Baru Bian (pictured) told The Edge recently.

“Projects that had been signed and duly assigned to the appropriate contractors will be continued unless there are issues raised against them,” the weekly reported Baru saying.

He explained that “scrutiny” of the highway project is part of an overall review of all infrastructure projects under the purview of the Works Ministry.

Studying ways to slash the cost is among the “fundamental” considerations powering the review, Baru added.

“Of course, as I look at it, once the letter of award is given and contract signed, basically we can’t do much. But if there is any possibility of agreeing [with the contractors involved] to reduce the expenses, why not? These are all possibilities being explored,” he told the business publication.

The Edge’s report said that the project “has seen some controversy, particularly the PDP model adopted to manage it and the political links of the PDP partners awarded the roles”.

Sabah Infrastructure Development Minister Datuk Peter Anthony recently said that using the PDP method is “a waste of rakyat’s money”.

“We could save up to RM1 billion if the project is managed by the Ministry of Works and Sabah’s Ministry of Infrastructure Development,” he said after a meeting with Baru.

Baru told the weekly that he has heard of concerns raised in his individual capacity, but the ministry has not received official complaints on the matter.

“[However], you can’t just go around stopping projects [based on hearsay], unless there is a complaint lodged with the proper channels. Then we will examine the complaint and see whether there is any legal basis to interfere.”

Baru also added that he will propose that the Works Ministry undertake the PDP role for future mega projects.