Lim Guan Eng
KUCHING: The savings from the cost rationalisation of the Pan Borneo Highway (PBH) project will allow the federal government to plan for even more projects, including a Trans-Borneo Highway connecting Sabah and Sarawak to Eastern Kalimantan, where the new Indonesian capital will be located.
Finance Minister Lim Guan Eng said the savings from the ongoing cost rationalisation to date is RM1.2 billion, reducing the project cost to RM29 billion.
Saying this in his 2020 Budget speech, he also reiterated the federal government’s commitment to complete the Pan Borneo Highway project, which is an important catalyst to economic growth in Sabah and Sarawak.
“What is saved now will allow us to plan for even more projects to spur economic growth, including in Sabah and Sarawak, such as the 165 kilometre-long Trans-Borneo Highway connecting Sabah and Sarawak to Eastern Kalimantan.
“An important component of this project is the package worth RM600 million for the 40km Jalan Kalabakan-Serudong and the construction of the Customs, Immigration, Quarantine and Security Complex (CIQS) and government housing quarters,” he said.
The federal government through Works Ministry is taking over the PBH from the project delivery partners Lebuhraya Borneo Utara Sdn Bhd (LBU) in Sarawak and Pan Borneo Highway PDP Sdn Bhd in Sabah.
For the Sarawak stretch of the PBH, the date of the handover of the project to Sarawak Public Works Department is February 2020. In Sabah, it was handed over to the state government to ensure a smoother process and cost savings not long after the PDP contract was terminated in April.
The PBH project in Sarawak is said to involve construction of the 1,077km stretch of the highway to be completed through 11 works packages (WPCs).
Other than the road works, this massive infrastructure project said to be worth RM16.12 billion also involves the construction of 115 bridges and 25 interchanges to provide seamless travel along the highway.
On a related matter, Lim also said another major developmental priority is on rural roads with a total allocation of RM1 billion throughout Malaysia, primarily targeted at Sabah and Sarawak.
“Rural road projects in Sabah amount to RM326 million and Sarawak amounts to RM224 million and will benefit the 145,000 rural population,” he said.