Kota Kinabalu: The termination of the Project Delivery Partner (PDP) system for the Pan Borneo Highway was a Federal Government decision aimed at benefiting Sabah, not hindering its development, said Parti Warisan Supreme Council Member Chen Ket Chuin.
“The decision to terminate the PDP system was made entirely by the Federal Government,” he said in a statement, adding that accusations against Warisan for cancelling local contracts are false.
He said under the PDP model, Borneo Highway PDP Sdn Bhd received a 5.5 per cent management fee, nearly RM700 million from a RM12 billion project, purely for coordination work, not actual construction.
“The Auditor-General’s Report exposed serious flaws, namely, the company lacked its own engineers, relying instead on Sabah Public Works Department staff, while some appointed contractors were financially unqualified with little road construction experience,” he said.
He said in April 2019, the Federal Government under then Prime Minister Tun Dr Mahathir Mohamad and Finance Minister Lim Guan Eng terminated the PDP contract due to these inefficiencies.
“None of the 10 road packages were cancelled and all contractors were allowed to proceed,” he said, noting that the termination transferred management directly to Sabah JKR for greater transparency and lower costs.
“The cancellation was never about stopping development or taking away local work. It was about ending a wasteful, federally controlled system that benefited a single large company,” he said.
He, however, called out the current administration’s handling of the project.
“The GRS + PH government has failed to turn that opportunity into real progress.
“They simply do not have the capability or efficiency to manage such a large-scale project effectively,” he said.
He noted that poor coordination, slow decision-making and unresolved land acquisition issues have stalled progress, with several packages only re-approved in 2023.
“The cancellation of the PDP was meant to empower Sabah and reduce wastage.
“But because of GRS and PH’s weak management, poor coordination and lack of capability, that opportunity was wasted and now they are blaming Warisan for problems caused by their own inefficiency,” he said.
