Kota Kinabalu: A total of 15 out of the 35 packages under Phase One of the Pan Borneo Sabah Project have made 79.06 per cent physical progress.According Deputy Chief Minister III Datuk Shahelmey Yahya (pic), these 15 packages are funded by Federal Government development allocations amounting RM1 billion per year. “Once the construction of these 15 packages reaches an advanced stage, the RM1 billion yearly allocation will undoubtedly be insufficient, let alone when we begin the remaining 20 packages,” he said at a press conference, here, Tuesday.
“However, during the tabling of the Budget 2023, the Prime Minister announced that RM20 billion has been allocated to complete the implementation of the Pan Borneo Project in Sabah and Sarawak,” he said.
SPONSORED CONTENT Firefly’s inaugural flight to Sandakan SANDAKAN: Firefly, the low-cost carrier subsidiary of Malaysia Airlines; made its inaugural flight from Kota Kinabalu to Sandakan on Tuesday. Read more “The RM20 billion allocation will be sufficient to finance the implementation of the remaining 20 packages, which we hope to begin by the end of this year,” he said.
On the progress of the 15 packages, he said that implementation contractors for the 15 packages had been appointed.
Two packages have been completed out of the 15 notably Package Five from the Benoni Roundabout to the Papar network and Package 27 at the Sandakan Batu 32 Check Point.
Another two packages, Package 15 at Balung Tawau and Package 21 near the Lahad Datu Bypass, are expected to be completed this year.
“We hope to complete the remaining 11 by or before 2024,” he said.
He cited utility relocation issues as one of the reasons for the slow progress in completing the 15 packages.
“I urge all parties involved, whether from the Public Works Department’s Pan Borneo Branch, project management consultants, or related utility companies, to come together and resolve all issues that may cause disruption to the implementation of the Pan Borneo Project,” he said.
Funding constraints and changes in government have caused sluggish implementation of the remaining 20 packages under Phase One of the Pan Borneo Sabah project. It was reported that 20 out of the 35 packages under Phase One of the Pan Borneo projects have yet to start. “The Pan Borneo Sabah project was initially implemented through the project delivery partner (PDP) concept, where the PDP company is appointed by the government,” said Shahelmey.
“However, following a change in government in 2018/2019 there were differing opinions, resulting in the PDP being terminated and the project being implemented conventionally,” said Shahelmey, who is also the State Works Minister.
He said this after attending a Hari Raya Aidilfitri Open House cum Ramah Mesra Bersama Media ceremony hosted by Sabah Public Works Department. “Under the PDP concept, it should be financed through sukuk or bonds,” he said. “However, since the PDP agreement was terminated, the question of where the financial sources will come from to finance the remaining packages arises.”
According to him, the pre-tender contract documentation for the 20 packages has reached a stage where it is ready to be executed. “However, calling the tender requires a Federal Government decision,” he said. “But, based on our readiness to implement the project, we are at the pre-tender stage, and we hope and expect it to start implementation before the end of this year,” he said. On another mater, he said preliminary work studies on the Kalabakan-Serudong -Kalimantan road construction will be conducted. “Although this road is not part of the Pan Borneo Sabah Project, a preliminary works study involving surveys and land investigations will be conducted this year,” he said.
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