RM2.865 billion in savings for Sarawak highway project, says Baru


Works Minister Baru Bian says through the conventional method, which is the new approach of the project, the overall development cost of the project is RM18.992 billion. – The Malaysian Insight file pic, February 20, 2020.

PUTRAJAYA is estimated to save RM2.865 billion by switching from a project delivery partner (PDP) model to conventional methods for the Sarawak portion of the Pan Borneo Highway (PBH).

Works Minister Baru Bian said the final amount of savings will be realised after a full evaluation is carried out in the future. 

The estimated saving took into account the development cost of RM21.857 billion, including construction costs, based on the PDP model.

“Through the conventional method, which is the new approach of the project, the overall development cost of the project is RM18.992 billion, taking into account the PDP’s costs until the end of the PDP (contract) on February 20, 2020,” he said in Kuching today.

With the abolition of further PDP fees payment for both the PBH Sarawak and PBH Sabah projects, the estimated savings is RM1.2 billion (PDP fee for PBH Sabah of RM0.640 billion and PBH Sarawak fee of RM0.559 billion ).

The Works Ministry today handed over the letter of appointment to the Sarawak Public Works Department (PWD) to be the superintending officer (SO) for the PBH project.

The state PWD will be responsible for monitoring and supervising the implementation of the highway project as well as managing the administration of contracts.

The superintending officer representative (SOR) will be responsible for assisting SO in monitoring and executing the project.

The minister has also submitted a plan for PBH Sarawak project with the end of Lebuhraya Borneo Utara Sdn Bhd (LBU) contract as the highway’s Project Delivery Partner (PDP), effective today (Feb 20, 2020).

The Sarawak’s section of PBH covers 11 packages totalling 786.41km, which commenced in October 2015.

A work package, WPC01 (Teluk Melano to Semantan for 33 km) was completed on schedule on January 6, 2019, he said.

PBH Sarawak is part of the Trans Borneo Highway, which will link the 786.41km Pan Borneo Highway in Sabah, the 425km Jalan Sarawak-Sabah Link Road (SSLR) and a 40km highway from Kalabakan to Serundong in Sabah.

The highway will also be connected to Simanggaris in Kalimantan (Indonesia) by the 3,901km Trans-Kalimantan Highway South which would eventually encompass the whole of Borneo, connecting nearly every coastal town in Malaysia (Sabah and Sarawak), Indonesia and Brunei. – Bernama, February 20, 2020.


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  • Way to go...maju sabah..

    Posted 4 years ago by Abdul Murad Othman · Reply