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Pan Borneo Highway: Phase 1 to be completed in 2040



KOTA KINABALU: Phase 1 of the ongoing Sabah Pan Borneo Highway project is subject to development expenditure based on the country's current financial capability and the 12th Malaysian Plan (12MP), said Deputy Chief Minister Datuk Seri Bung Moktar Radin.


Based on the 2021 Budget and current trends, Bung Moktar, who is also state Minister of Works, said only one out of the remaining 20 packages was approved for next year.


"Through the projections made, the Sabah Public Works Department (JKR) expects only five to six packages to be implemented in the 12MP (2021-2025) and only 21 of the 35 packages can be completed by 2028.


"Meanwhile, the overall 35 packages under Phase 1 are expected to be completed only by 2040," he said in response to questions from Datuk Seri Salleh Said Keruak (Usukan-BN) and Senator Datuk Abdul Ghani Mohd Yassin (Nabawan-Bersatu) at the State Legislative Assembly sitting here, today.


To achieve the completion objectives, he said the state government is committed to implementing the entire package simultaneously by proposing to the federal government to allow Sabah to carry out the project through Private Financial Initiatives (PFI).


The Sabah Pan Borneo Highway project will be implemented in three phases. Phase 1 of the project covers 706km and includes 35 work packages. The implementation cost of Phase 1 was estimated at RM15.272 billion.


Bung Moktar noted that Phase 1 was implemented through the Project Delivery Partner (PDP) concept on April 11, 2016, making PDP a single point of accountability in the implementation of the Pan Borneo Highway project in the state.


Through the PDP agreement, the method of financing the Sabah Pan Borneo Highway project is through development expenditure and Terbitan Sukuk.


"However, in 2019, the state government had proposed that the federal government terminate the service of the PDP and subsequently terminate the PDP agreement, which was done in Sept last year.


"This resulted in the implementation of the Sabah Pan Borneo Highway project being completely dependent on development expenditure and the project is implemented by JKR Sabah," he said.


Currently, Bung Moktar said 11 work packages are being implemented and four others would be carried out early next year, while the remaining 20 packages would be done in the 12MP, with implementation being planned to begin next year.


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