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BHP still carrying out works for Pan Borneo Highway Sabah

25th March, 2019

KOTA KINABALU: Borneo Highway PDP Sdn Bhd (BHP) is unaware of the termination of the Project Delivery Partner (PDP) model for Pan Borneo Highway Sabah (PBHS) project and is currently still proceeding with the works in accordance with the PDP Agreement (PDPA) signed in April 2016, it said in a statement issued on Sunday.

The statement was in response to The Financial Edge news report dated 21st March 2019 on the termination of the Project Delivery Partner (PDP) model for Pan Borneo Highway project in Sabah.

Its Acting Chief Executive Officer Muhammad Fadzil Abdul Hamid said the implementation of the Project is overseen by various committees chaired by government officials from both Federal and State levels, to decide matters pertaining to contract awards, cost controls, procurement, engineering design, contract management, construction works etc.

Members of these committees comprised relevant government stakeholders, including but not limited to, the Sabah State Secretary, Ministry of Works (MOW) Malaysia, Ministry of Finance (MOF) Sabah, Ministry of Finance (MOF) Malaysia, Ministry of Infrastructure Development (KPI) Sabah, Jabatan Kerja Raya (JKR) Sabah, as well as Independent Consulting Engineers (ICE).

“In terms of claims and payments, all claims are prepared by professional consultants, verified by the ICE, before approval for payment by JKR Sabah and forwarded to Jabatan Bendahari Negeri for payment process.”

“There have been sufficient policies, procedures and processes put in place to ensure competency, transparency and accountability in the implementation of the project,” he said.

In clarifying the misconception amongst the public that the PDP does not have to bear the full brunt of cost overruns and delays, BHP explained that the PDP is responsible to deliver two important aspects (Key Performance Indicators or KPIs), which is to deliver the project within the agreed Target Cost and Time frame set, together with the Federal and Sabah State, for the project.

Failure to deliver these two KPIs will result in penalty to PDP via deduction of fee if the project is completed beyond the agreed Target Cost and Time.

BHP also stated that the speculations in the media has caused jittery and unnecessary anxiety among its staff, consultants, work package contractors, supply chains, financial institutions and local construction industries.

To date, 12 of the 35 packages have been awarded and BHP has employed over 250 personnel, about 90 per cent of whom are local Sabahan technical professionals. The Project has also provided some 3,000 employment opportunities among consultants, contractors, vendors and suppliers involved in the project.

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