SARAWAK Chief Minister Abang Johari Openg said he is not overly concerned about how the federal government manages the construction of the Pan Borneo Highway or who it awards the contracts to.

Instead, he said his only concern with the changes by the new Pakatan Harapan government is over delays to the RM29 billion project that the state has waited 60 years for.

Earlier today, The Edge Financial Daily had reported the federal government announcement that it will do away with the project delivery partner (PDP) model of the previous Barisan Nasional administration in favour of a turnkey contractor model.

“It’s a federal government project and it’s up to them to decide what they want to do,” Abang Johari said when asked on the report after witnessing the signing of a RM313 million onshore maintenance, construction and modification services (ONMCM) contract between Petronas Carigali and Serba Dinamik Holdings Bhd in Kuching today.

“Up to them. Their project.

“But what we are concerned about is (that the changes) won’t delay the project.”

The report said the Works Ministry will take over the project and replace the existing PDP with turnkey contractors who will be hired to complete the remaining construction works.

The decision was taken in light of cost overruns under the existing PDP structure, the report read.

It said PDP contractors usually earned a certain percentage of a project’s cost, but do not have to bear the full brunt of cost overruns and delays.

In comparison, with a turnkey model, the project cost is fixed from the beginning.

The report, however, said it was unclear whether existing PDPs would be shortlisted by the government as candidates for turnkey contractors.

The Sabah government is reportedly said to have submitted a proposal to take over implementation of the state’s portion of the project.

Borneo Highway PDP Sdn Bhd is currently the PDP for the 706km-long Sabah portion of the highway, whereas Lebuhraya Borneo Utara Sdn Bhd is the PDP for the Sarawak portion. – March 21, 2019.