KUCHING: No companies will be axed from the Pan Borneo Highway Sarawak (PBHS) project despite the termination of Lebuhraya Borneo Utara Sdn Bhd (LBU) as project delivery partner (PDP), said Works Minister Baru Bian.
He said all 11 works packages (WPCs) involved in the PBHS would be novated once the PDP is terminated.
“The WPCs by all the main contractors are still going on, that one I must emphasise. No issue with that.
“I think the news about terminating contractors is not right. As far as I am concerned, once the LBU is terminated, all the WPCs should be novated. That is the idea with this project,” he told the media after co-chairing the third Sarawak-Federal Government Joint Action Committee meeting yesterday.
He confirmed that a termination letter was issued to LBU on Friday last week.
“Decision has been made already. Letter has been issued last Friday (Sept 20),” he said.
The Edge reported on Wednesday that more companies could face the axe in the Sarawak portion of the Pan Borneo Highway project, following the government’s decision earlier this month to remove LBU as the PDP.
The main contractors involved in the PBHS are Maltimur Resources Sdn Bhd, Konsortium URW Sdn Bhd, Konsortium KPE Sdn Bhd, Pekerjaan Piasau Konkerit Sdn Bhd, Samling Resources Sdn Bhd, Zecon Kimlun Consortium Sdn Bhd, HSL DMIA JV Sdn Bhd, and Naim Gamuda JV Sdn Bhd.
PBHS involves the construction of 1,077km of highway through 11 WPCs. Other than the road works, this massive infrastructure project, worth RM16.12 billion, also involves the construction of 115 bridges and 25 interchanges.
The first WPC of 32.77km from Telok Melano to Sematan was completed in January.
LBU had in an earlier press statement said the physical progress of the project is now 45 per cent.
The Edge Financial Daily had reported on Sept 6 that the federal government decided to terminate the PDP agreement for PBHS although nearly half of the first phase has been completed.
According to The Edge, with LBU out of the picture, the Ministry of Works is likely to handle the rest of the construction of the highway in Sarawak.