Kota Kinabalu: The Federal Government now faces a hefty RM70 million in compensation costs for landowners affected by the Donggongon-Tambunan road up–grade in Penampang, more than double the original RM30 million estimate.
Works Minister Datuk Seri Alexander Nanta Linggi said the spike in land acquisition costs led to two extensions of time (EoT) for the RM92.026 million project, which began in October 2021 and is scheduled for completion by October 2025 under the 11th Malaysia Plan.
“It involves 98 land lots and 46 infrastructure units. The initial budget was insufficient, and the revised amount is still under discussion,” he said after a meeting at the Penampang Public Works Department.
He added that as long as land payments are unresolved, key work like utility relocation and construction in certain areas cannot begin.
A coordination meeting involving the Economic Ministry and related agencies is expected soon to resolve the financial bottleneck.
“The road upgrade is essential for the safety and comfort of over 300,000 road users. Contractors are ready, but land and utility issues are holding things back,” said Alexander.
The project includes widening the Penampang Bypass and Penampang-Tambunan Road to a four-lane dual carriageway over 6.2km, and another 1.2km stretch from the district Police Station junction to Datuk Panglima Banting junction.
Also included are upgrades to the 0.8km Penampang Lama Road, construction of an elevated interchange at Sigah Roundabout with U-turn lanes, two 30m bridges over Sungai Kobagi, three U-turns at key points, and a pedestrian bridge.
Alexander is scheduled to meet Chief Minister Datuk Seri Hajiji Noor on Monday to discuss ongoing and upcoming infrastructure projects in Sabah, and will later chair a project implementation meeting for the Pan Borneo Highway.
On the congested Tamparuli-Sandakan stretch, which causes travel delays of up to four hours, he said the issue will ease once the Pan Borneo Package 3B begins.
“The country needs RM4 billion to upgrade federal roads nationwide, yet only about 30 per cent is allocated annually. We’ve raised this with the Economic Ministry,” he said.
A committee has also been formed to monitor such issues, with the Chief Secretary recommending more frequent meetings to address both immediate and long-term infrastructure needs.
“In the short term, we’ll work with concessionaires to prioritise critical works,” Alexander added.
