Works Minister Datuk Seri Alexander Nanta Linggi said letters of acceptance (LOA) for Phase 1B of the Sabah Pan Borneo Highway are expected to be issued to the chosen contractors in the third quarter of this year.

KUALA LUMPUR (June 25): A total of 15 out of 19 work packages for Phase 1B of the Pan Borneo Highway project in Sabah are currently undergoing final evaluation in an open tender process, the Dewan Rakyat was told on Tuesday.

Works Minister Datuk Seri Alexander Nanta Linggi said letters of acceptance (LOA) are expected to be issued to the chosen contractors in the third quarter (3Q) of this year.

He noted that contractors have already been appointed for four of the work packages for the 366.8km project to undertake construction work.

Nanta said the estimated development cost for the project is RM13.99 billion, funded through a hybrid financing method using allocations from the Development Expenditure Budget and sukuk or bond issuances by DanaInfra Nasional Bhd.

“Based on current financial projections, RM400 million has been allocated for preliminary works in 2024,” he said during the question and answer session.

He was responding to a question from Isnaraissah Munirah Majilis (Warisan-Kota Belud) regarding the latest type of procurement made and the source of funding for the project.

Regarding the current status of Work Package 9 involving the route from Serusop to Pituru, which has been taking a long time, Nanta said it was to ensure that the chosen contractors are qualified and capable of executing the work.

He said the final evaluation process for the procurement of the work package is currently underway, with LOA expected to be issued in 3Q of this year, and the project is expected to be completed within three years after the issuance of LOA.

“The Sabah Pan Borneo Highway project is a high-impact project and a priority for the Works Ministry. Therefore, we are committed to ensuring that this project is implemented according to plan, thus improving the federal road infrastructure network in Sabah,” he said.

To a supplementary question from Datuk Seri Dr Ronald Kiandee (PN-Beluran) about why the Pan Borneo Highway project in Sarawak is more advanced than in Sabah, Nanta explained that the delays were due to various factors, including land acquisition issues, utility relocation and contractor selection.

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