Nanta vows improved delivery after audit findings on Sabah Pan Borneo Highway

The works ministry is taking seriously the findings of 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.

Works minister Alexander Nanta Linggi said the national audit department 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 project had been completed. The remaining 31 packages are still under implementation, with physical progress at 89.01% for Phase 1A, 37.58% for WP09 and 23.96% for Phase 1B.

“Project delays were caused, among others, by a 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.

The current site readiness status has reached 99.79% for Phase 1A, 96.8% for WP09 and 79.43% for Phase 1B.

Nanta said the relevant officers in his ministry and the Sabah public works department (JKR) have also been directed to attend administration and contract management courses with the Construction Industry Development Board Malaysia and JKR Malaysia’s Centre for Excellence in Engineering and Technology to strengthen their skills in preparing bills of quantities, cost determination and contract documents.

He said the Sabah Pan Borneo Highway steering committee, established in November 2024, had also continued to strengthen monitoring through its site visit programme.

He said Sabah chief minister Hajiji Noor had recommended that the committee be co-chaired by the ministry secretary-general and the Sabah state secretary to enhance coordination among state agencies.