LBU kicked out from Pan Borneo highway project, state JKR to fully take over, cut cost 
Oct 4 2019, 05:08 PM, updated 7y ago
LBU role in Sarawak Pan Borneo Highway axed
1 Oct 2019 SoS
QUOTE
KUCHING: Lebuhraya Borneo Utara Sdn Bhd (LBU), whose role as the project delivery partner (PDP) of Sarawak Pan Borneo Highway project has been axed, is given five months to hand over the project to Sarawak Public Works Department (JKR).
The handover date is February 2020, according to Works Minister Batu Bian’s special officer for the ministry’s projects in Sarawak, See Chee How.
LBU confirmed with StarBiz that it received the PDP termination letter on Sept 20.
“We have to novate all the main contractors (of the 10 work packages) to JKR. There will be no change to their agreements, ” said See in his presentation on Pan Borneo Highway – a game changer for Sarawak infrastructure at the 2019 Sarawak Investment and Business Summit here.
LBU, which is linked to Sarawak tycoon Tan Sri Bustari Yusof, was awarded the contract (phase 1) valued at about RM16.49bil in 2015. One of the 11 work packages involving total length of about 749km from southern Sarawak to the north in Miri, has been completed.
The handover date is February 2020, according to Works Minister Batu Bian’s special officer for the ministry’s projects in Sarawak, See Chee How.
LBU confirmed with StarBiz that it received the PDP termination letter on Sept 20.
“We have to novate all the main contractors (of the 10 work packages) to JKR. There will be no change to their agreements, ” said See in his presentation on Pan Borneo Highway – a game changer for Sarawak infrastructure at the 2019 Sarawak Investment and Business Summit here.
LBU, which is linked to Sarawak tycoon Tan Sri Bustari Yusof, was awarded the contract (phase 1) valued at about RM16.49bil in 2015. One of the 11 work packages involving total length of about 749km from southern Sarawak to the north in Miri, has been completed.
‘Cabinet agrees to remove PDP of Pan Borneo Sarawak’
6 Sep 2019 SoS
QUOTE
While construction works are underway, the highway project continues to be under scrutiny as the Pakatan Harapan-led government remains laser-focused on cost-cutting.
Baru was earlier reported as saying that his ministry can bring down the project’s cost should the federal government take over from the PDP.
This is as a fee of 5.5% of the project cost must be paid to the PDP under the contract agreement. Given the RM16.49 billion price tag, this means that the PDP model for the Pan Borneo Highway in Sarawak would have cost the government some RM907 million.
PDP contractors usually earn a certain percentage of a project’s cost, but do not have to bear the full brunt of cost overruns and delays, as compared with the turnkey model, in which the project cost is fixed from the beginning.
Baru was earlier reported as saying that his ministry can bring down the project’s cost should the federal government take over from the PDP.
This is as a fee of 5.5% of the project cost must be paid to the PDP under the contract agreement. Given the RM16.49 billion price tag, this means that the PDP model for the Pan Borneo Highway in Sarawak would have cost the government some RM907 million.
PDP contractors usually earn a certain percentage of a project’s cost, but do not have to bear the full brunt of cost overruns and delays, as compared with the turnkey model, in which the project cost is fixed from the beginning.
PH govt always sayang rakyat cut down wastage by lanunku cronies
wankongyew M4A1
Quote
0.0148sec
0.14
5 queries
GZIP Disabled