The Works Ministry is taking seriously the findings in the 2026 Auditor-General’s Report on Phase 1 of the Sabah Pan Borneo Highway project, with the ministry set to use the findings to improve project delivery and the implementation of other federal development projects.
Works Minister Alexander Nanta Linggi said the National Audit Department had identified several issues, including project delays, cost increases, weaknesses in planning and non-compliance with regulations and guidelines.
As of Aug 25, only four of the 35 work packages under Phase 1 had been completed. The remaining 31 packages are still being implemented, with physical progress at 89.01% for Phase 1A, 37.58% for WP09 and 23.96% for Phase 1B.
Nanta said the delays were caused by several factors, including the change from the project delivery partner (PDP) model to the conventional implementation method, the Covid-19 pandemic, land acquisition issues, utility relocation and contractor performance.
“The termination of the PDP model in 2019 also necessitated a new procurement process before 15 Phase 1A contractors were awarded the packages in 2021,” he said in a Facebook post.
He said the increase in costs for Phase 1A was attributed to the extension of the project period, changes in scope, construction contract prices, as well as unresolved land acquisition and utility issues.
Despite the challenges, current site readiness has reached 99.79% for Phase 1A, 96.8% for WP09 and 79.43% for Phase 1B.
Nanta said officers from the ministry and the Sabah Public Works Department (JKR) had also been instructed to attend administration and contract management courses organised by the Construction Industry Development Board Malaysia and JKR Malaysia’s Centre for Excellence in Engineering and Technology.
The training is aimed at strengthening their skills in preparing bills of quantities, determining costs and preparing contract documents.
He added that the Sabah Pan Borneo Highway steering committee, established in November 2024, had continued strengthening project monitoring through its site visit programme.
Nanta said Sabah Chief Minister Hajiji Noor had also recommended that the committee be co-chaired by the ministry’s secretary-general and the Sabah state secretary to improve coordination among state agencies.
