Kuala Lumpur: The government has imposed a Liquidated Ascertained Damages (LAD) penalty of RM31.8 million on two contractors for delays in completing the Sabah Pan Borneo Highway (LPB) project.
Deputy Minister of Works Datuk Seri Ahmad Maslan said 23 work packages were identified as running behind the original schedule of the mega infrastructure project.
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“Several factors, including unpredictable weather, land acquisition challenges, utility relocation issues, and on-site contractor performance, caused the delays.
“The Ministry recognises the public concern over the impact of these delays on mobility, logistics costs, and the state’s economic growth,” he said during the Dewan Negara’s oral question-and-answer session today.
He was responding to Senator Datuk Edward Linggu Bukut’s question on the number of delayed LPB Sabah packages and the LAD penalties imposed on the contractors.
Commenting on the project’s progress, Ahmad said Phase 1A, comprising 16 work packages, has reached 86.6 per cent completion and is expected to be fully completed in the first quarter of 2027.
Phase 1B, which covers 19 work packages, is currently 13.56 per cent complete and is targeted for completion in the fourth quarter of 2028.
“Intensive works along the Phase 1B alignment only began recently after land acquisition issues between the federal and state governments were successfully resolved,” he said.
To minimise disruption to road users, he added that the ministry has stepped up routine maintenance, including repairs to damaged road sections, with contractors required to implement more effective Traffic Management Plans.
In addition, completed stretches will be opened earlier as alternative routes to ease congestion, without having to wait for the completion of the entire phase.
On Phase 2 of the 98-kilometre Tamparuli–Ranau alignment raised by Edward in a supplementary question, Ahmad said it remains at the planning stage, with implementation subject to the government’s financial capacity, as the project will not impose toll charges.
