KUCHING: With the decision to terminate the Project Delivery Partner (PDP) agreement for the Sarawak portion of the Pan Borneo Highway project, Lebuhraya Borneo Utara Sdn Bhd (LBU), now hopes that the highway will be completed as promised.
“As professionals, we believe that we have done our part to develop, commence and meet all our obligations to deliver the highway to its current half-way completion.
“So now if the government wants to take over the remaining stage, LBU hopes that the government will complete the highway on time, within cost and quality standards, similar to the Telok Melano-Sematan stretch, which was completed ahead of schedule and below the target costs.
“We are proud to have started the development of this long-awaited and highly-anticipated highway,” said LBU.
Talk of the termination of the PDP surfaced when the government changed hands in mid-2018.
LBU had anticipated that it would not be terminated after having achieved a potential saving of RM2 bln and driving its contractors to meet their respective progress timeline.
“LBU is proud to have been able to perform its obligations to meet all project milestones thus far. We work very closely with the federal and state governments on all aspects of project delivery from design, planning, governance, procurement, monitoring progress, ensuring quality, capacity-building, Bumiputera participation and more.
“As PDP, which acts like a partner and an extension arm of the government, you cannot do as you like. The government is the decision maker. PDP does the groundwork and drives implementation,” it said.
Development of Phase 1 involved constructing a four-lane dual carriageway over 786km from Telok Melano to Miri.
Divided into 11 work packages comprising 25 individual sections, the main contractors were pre-qualified based on preset and agreed technical and commercial selection criteria.
In instances of joint-ventures with Peninsular Malaysia companies to strengthen the capabilities of the work package contractors (WPC), the Sarawak entity leads the JV with no less than 70 per cent equity. Successful bidders were then invited to tender for packages.
Each package ranged from between 60 and 95km and the mainline comprised 115 bridges, 25 interchanges, traffic barriers, road signages, overhead pedestrian bridges, rest and service areas, lay-bys and bus shelters.
The cost per kilometre for road works of the highway is estimated at RM15.97 million, covering utilities relocation and road furniture across varied terrain, including deep foundations and soft ground conditions mainly found in central Sarawak.
Inclusive of costs to construct bridges and interchanges, the cost per kilometre would then be RM19.36 mln.
In ensuring a minimum 30 per cent Sarawak Bumiputra participation, LBU introduced the Bumiputra Participation Programme.
Today, that target has been exceeded with 32.34 per cent of the total contract value, where an equivalent of over RM5.2 bln of work is identified to be allocated for Sarawak Bumiputera contractors of various grades and capabilities.
As at Aug 25, the overall actual WPCs work progress over the whole 25 sections had reached an average of 45 per cent completion —with some sections achieving between 55 to 63 per cent completion.
The section of Batang Rajang (Durin) bridge under WPC 07 in Sibu has in fact achieved 87.2 per cent completion as at end of August.
As at end of August, over 160km of the highway’s first of two carriageways has been partially completed to divert ‘live’ traffic, thereby allowing road users a more comfortable driving experience.
By end of 2019, it is expected that a total of 395km of the first carriageway will be opened to traffic. At the same time, work will continue unhindered on completing the second carriageway.
“For LBU, months of market talk of changing the project’s implementation model has been most disruptive to an efficient set-up designed and agreed by the government to effectively deliver 786km of the highway across Sarawak.
“Rumours in the market have gotten all parties involved in the project jittery. It certainly affected the good rate of progress achieved in the previous months.
“This is very sad as all this disruption may affect the continuation and overall completion of the highway,” it added.
