The Malaysian government has imposed a total Liquidated Ascertained Damages (LAD) of RM31.8 million on two contractors for failing to complete their work on schedule for the Sabah Pan Borneo Highway (LPB) project.
Deputy Minister of Public Works, Datuk Seri Ahmad Maslan, stated that 23 work packages were identified as delayed compared to the original project timeline. He attributed the setbacks to factors such as unpredictable weather, land acquisition challenges, utility relocation issues, and contractor performance on site.
“The ministry recognises that these delays raise concerns over public mobility, logistics costs, and the state’s economic growth,” Ahmad said during a Dewan Negara oral question session.
He provided updates on the project’s progress, noting that Phase 1A, covering 16 work packages, has reached 86.6% completion and is expected to finish in the first quarter of 2027. Phase 1B, which includes 19 packages, is currently at 13.56% progress and is targeted for completion by the fourth quarter of 2028. Ahmad added that intensive work on Phase 1B only began after land acquisition issues between the federal and state governments were resolved.
To minimise disruption to road users, the ministry has implemented more rigorous routine maintenance, including road repairs, and required contractors to prepare more effective Traffic Management Plans (TMP). Sections of the highway that are already completed will also be opened early as alternative routes to alleviate congestion without waiting for the entire phase to be finished.
Regarding Phase 2, spanning 98 kilometres from Tamparuli to Ranau, Ahmad explained that planning is ongoing, with execution dependent on government funding as this section will not collect tolls.
