Pan Borneo Highway: Works Ministry to address audit findings, improve project delivery, says Nanta

Works Minister Datuk Seri Alexander Nanta Linggi said the ministry is taking seriously the 13 findings in the 2026 Auditor-General’s Report on Phase 1 of the Sabah Pan Borneo Highway project and will use them to strengthen project delivery and the implementation of other Federal government development projects. — Bernama pic

First Published: Thursday, 08 Oct 2026 2:01 PM MYT

KUALA LUMPUR, Oct 8 — The Ministry of Works (KKR) is taking seriously the 13 findings in the 2026 Auditor-General’s Report (LKAN) on Phase 1 of the Sabah Pan Borneo Highway (LPB) project and will use them to strengthen project delivery and the implementation of other Federal government development projects.

Works Minister Datuk Seri Alexander Nanta Linggi said the National Audit Department (JAN) findings included project delays, cost increases, weaknesses in planning and non-compliance with regulations and guidelines.

He said as of Aug 25, only four of the 35 work packages under Phase 1 of the Sabah LPB have been completed, while the remaining 31 packages are still under implementation, with physical progress at 89.01 per cent for Phase 1A, 37.58 per cent for WP09 and 23.96 per cent for Phase 1B.

“Project delays were caused, among others, by the change in the implementation method from the Project Delivery Partner (PDP) model to the conventional 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.

Nanta said the cost increase for Phase 1A was due to the extension of the project period, changes in scope, construction contract prices, as well as unresolved land and utility issues.

However, the current site readiness status had reached 99.79 per cent for Phase 1A, 96.8 per cent for WP09 and 79.43 per cent for Phase 1B.

He said KKR has also directed the relevant officers in the Sabah Public Works Department and the ministry to attend administration and contract management courses with the Construction Industry Development Board Malaysia (CIDB) and JKR Malaysia’s Centre for Excellence in Engineering and Technology (CREaTE) to strengthen their skills in preparing Bills of Quantities, cost determination and contract documentation.

In addition, he said the Sabah LPB Steering Committee, established in November 2024, has continued to strengthen monitoring through its site visit programme.

He said Sabah Chief Minister Datuk Seri Hajiji Noor has also recommended that the committee be co-chaired by the KKR secretary-general and the Sabah State Secretary to enhance coordination among state agencies. — Bernama