Dr Joachim Gunsalam
KOTA KINABALU: Eight packages of the 177km Pan Borneo Highway Sabah are proposed to be opened to motorists in stages before the end of this year to expedite benefits to the public while work continues on other sections.
Deputy Chief Minister I cum Works and Utilities Minister Dr Joachim Gunsalam said the move was being undertaken alongside follow-up measures to address findings in the Auditor-General’s Report 2026 Series 2, tabled on Oct 5.
“The State Government accepts the audit observations openly. Our focus now is on resolving the issues so that the people can use better roads as soon as possible,” he said in a statement.
He said six packages covering 135.8km had received Certificates of Partial Occupation, allowing completed sections to be opened to the public while work continued on the remaining sections.
These packages cover routes from Sindumin to Beaufort and Bongawan, as well as Putatan to Tebobon and Moynod to Sapi Nangoh.
As at Sept 25, four packages covering 41.5km had been fully completed, namely WP05 Papar to Donggongon, WP15 Tawau to Semporna, WP21 Lahad Datu Bypass and WP27 Kampung Lot M to Sandakan Mile 32.
Another eight packages covering 161.8km are targeted to receive Certificates of Practical Completion in 2027, confirming that all construction works have been completed.
Clarifying the 11.4 per cent completion figure cited in the audit report, Dr Joachim said it referred to four out of 35 packages that had been fully handed over as at March 31, 2026.
He explained that the 35 packages were implemented in stages under different arrangements. Of the initial 12 packages, three began in 2016, four in 2017 and five in 2018 under the Project Delivery Partner (PDP) model.
Following the termination of the PDP model at the end of 2019, 11 packages were re-awarded to the same contractors, one was retendered and three new packages were tendered, bringing the total for Phase 1A to 15 packages.
Phase 1B comprised 17 packages that began in 2024, while WP09 started in 2025 and the remaining Phase 1B package in 2026.
He said the delay in commencing Phase 1B and WP09 was due to full approval for funding from the Federal Government being obtained only in 2023.
As at Sept 25, physical progress stood at 89.54 per cent for Phase 1A, 38.87 per cent for WP09 and 24.76 per cent for Phase 1B, which began construction in 2024.
The status of sites free from obstructions had also improved significantly, reaching 99.79 per cent for Phase 1A, 96.8 per cent for WP09 and 79.43 per cent for Phase 1B.
Dr Joachim said land acquisition and utility coordination were among the State Government’s main responsibilities under the project, which is a Federal road project fully funded by the Federal Government.
Decisions on funding allocations and contractor appointments rest with the Works Ministry and Finance Ministry, while the Sabah Public Works Department (JKR) serves as the implementing agency on the ground.
“The success of this project depends on cooperation between both governments. Relations between the State and Federal Governments are now at their best, and we are working together to resolve every obstacle,” he said.
On the causes of delays, Dr Joachim said the project, which was formalised in 2016, underwent a change in implementation model from PDP to the conventional method, which took effect on Sept 22, 2019. The transition required new procurement and contractual processes, with the appointment of 15 Phase 1A contractors completed only in 2021.
The COVID-19 pandemic also disrupted the workforce and supply of construction materials. In addition, more than 70 per cent of the project involves widening existing roads from two to four lanes while maintaining traffic flow.
To address the audit findings, the State Government and the Works Ministry have introduced several measures. The Pan Borneo Sabah Steering Committee, established in November 2024, conducts regular site visits and is proposed to be co-chaired by the Works Ministry secretary-general and the State Secretary to expedite inter-agency coordination.
Recovery plans have also been imposed on underperforming contractors. A new contractor for WP35 Kampung Nabutan to Ranau was appointed on Jan 13, 2026.
Meanwhile, progress on WP11 Rampayan Laut to Sarang improved from 61.76 per cent in June to 74.18 per cent in September following the implementation of a recovery plan.
Regarding the audit finding on variation orders worth RM513.99 million that exceeded the approval authority limits, Dr Joachim said the State Government acknowledged the observation and supported clearer and faster approval mechanisms for variation orders to be incorporated into contracts with the Works Ministry and Finance Ministry without compromising governance.
Sabah JKR officers have also undergone contract management training with the Construction Industry Development Board Malaysia (CIDB) and CREATE JKR, covering Bills of Quantities, cost estimates and contract documentation.
Moving forward, the State Government will prioritise early coordination with land offices and utility companies before construction begins, as well as firm action against contractors who fail to meet performance targets. Road user safety in construction zones and transparent progress updates to the public will also be given priority.
Dr Joachim said Phase 1B packages would be completed in stages according to their contractual dates up to 2030, with progress closely monitored.
He also welcomed the RM1.38 billion allocation for the Pan Borneo Highway in Budget 2027, saying it would ensure continuity of work at construction sites.
“The people judge us by the roads they travel every day. Every section opened is proof of progress, and we will continue working until the Pan Borneo Highway Sabah is fully completed,” he said.
