Contractors for Sabah Pan Borneo Highway handed RM31.8mil penalty for delays

2026-03-03 - 05:23

Factors including unpredictable weather, land acquisition challenges, utility relocation issues, and on-site contractor performance have been identified as causing delays in the Sabah Pan Borneo Highway project. (Bernama pic) KUALA LUMPUR: The government has imposed a liquidated ascertained damages (LAD) penalty of RM31.8 million on two contractors for delays in completing the Sabah Pan Borneo Highway (LPB) project. Deputy works minister Ahmad Maslan said 23 work packages were identified as running behind the original schedule of the mega infrastructure project. “Several factors, including unpredictable weather, land acquisition challenges, utility relocation issues, and on-site contractor performance, caused 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 an oral question-and-answer session in the Dewan Negara today. He was responding to a question by Senator Edward Linggu Bukut on the number of delayed LPB Sabah packages and the LAD penalties imposed on the contractors. Ahmad said Phase 1A, comprising 16 work packages, was 86.6% complete and expected to be fully complete in the first quarter of 2027. Phase 1B, which covers 19 work packages, is currently 13.56% complete and 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 resolved,” Ahmad said. To minimise disruption to road users, he said the ministry had stepped up routine maintenance, including repairs to damaged road sections, with contractors required to implement more effective traffic management plans. Completed stretches will also be opened earlier as alternative routes to ease congestion. On Phase 2 of the 98km Tamparuli-Ranau alignment raised by Edward in a supplementary question, Ahmad said it remained at the planning stage, with implementation subject to the government’s financial capacity as the project would not impose toll charges.