KOTA KINABALU: The Federal Government now faces RM70 million in land compensation for the Donggongon-Tambunan road upgrade in Penampang, more than double the original RM30 million estimate.
Works Minister Datuk Seri Alexander Nanta Linggi said the cost hike has caused two delays in the RM92 million project, which began in October 2021 and is set to complete by October 2025.
With 98 land lots and 46 infrastructure units affected, unresolved payments have stalled utility relocation and construction. A coordination meeting with the Economic Ministry is planned to resolve the funding shortfall.
The project includes road widening, an elevated interchange at Sigah Roundabout, two bridges over Sungai Kobagi, three U-turns, and a pedestrian bridge benefiting over 300,000 road users.
Alexander will also meet Sabah Chief Minister Datuk Seri Hajiji Noor and chair a Pan Borneo Highway meeting on Monday.
He noted that the RM4 billion needed annually to upgrade federal roads far exceeds current allocations, stressing the need for more frequent planning meetings and prioritisation of critical works.
