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[BUSINESS] · Malaysia · 3 sources

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Sabah Pan Borneo Highway progress exceeds reported 11.4%

Sabah Deputy Chief Minister and Minister of Works and Utilities, Dr. Joachim Gunsalam, has stated that the actual physical progress of the Pan Borneo Highway in Sabah is significantly higher than the 11.4% completion rate cited in the Auditor-General’s Report.

Gunsalam explained that the 11.4% figure only accounts for the four out of 35 packages that have been fully completed and handed over. He noted that many other packages are actively under construction, with some alignments reaching between 23% and 93% physical progress.

The state government aims to open eight packages, spanning 179 kilometers, in stages by the end of 2026. Challenges affecting the project include Sabah’s difficult terrain—such as hilly topography, swamps, and peat soil—as well as the transition from the Project Delivery Partner (PDP) model to conventional methods, land acquisition issues, and the impact of the COVID-19 pandemic.

Regarding Variation Orders (VO) exceeding RM514 million, Gunsalam clarified that approval authority lies with the federal works and finance ministries, as the Sabah Public Works Department serves only as a technical implementing agency.

Entities

Gabungan Rakyat Sabah · Joachim Gunsalam · Pan Borneo Highway · Sabah