The government has imposed RM31.8 million in penalties on two contractors for delays to the Sabah Pan Borneo Highway, with 23 work packages behind schedule.
KUALA LUMPUR: The government has imposed a Liquidated Ascertained Damages penalty of RM31.8 million on two contractors for delays in completing the Sabah Pan Borneo Highway project.
Deputy Minister of Works Datuk Seri Ahmad Maslan said 23 work packages were identified as running behind the original schedule.
He cited unpredictable weather, land acquisition challenges, utility relocation issues, and on-site contractor performance as causes for the delays.
“The Ministry recognises the public concern over the impact of these delays on mobility, logistics costs, and the state’s economic growth,” he said during the Dewan Negara’s oral question-and-answer session.
He was responding to a question from Senator Datuk Edward Linggu Bukut on the delayed packages and penalties imposed.
Ahmad said Phase 1A, comprising 16 work packages, has reached 86.6% completion and is expected to be fully finished in the first quarter of 2027.
Phase 1B, covering 19 work packages, is currently 13.56% complete and is targeted for completion in the fourth quarter of 2028.
“Intensive works along the Phase 1B alignment only began recently after land acquisition issues between the federal and state governments were successfully resolved,” he explained.
To minimise disruption, the ministry has stepped up routine maintenance, including repairs to damaged road sections.
Contractors are also required to implement more effective Traffic Management Plans.
Completed stretches will be opened earlier as alternative routes to ease congestion, without waiting for the entire phase to finish.
On Phase 2 of the 98-kilometre Tamparuli–Ranau alignment, Ahmad said it remains at the planning stage.
Its implementation is subject to the government’s financial capacity, as the project will not impose toll charges.
