By DayakDaily Team
KUCHING, Oct 29: The federal government paid RM155 million in compensation to Borneo Highway PDP Sdn Bhd (BHPSB) to settle disputed claims following the termination of its contract to manage the Sabah Pan Borneo Highway project in 2019, according to The Edge Malaysia.
Works Minister Dato Sri Alexander Nanta Linggi said that the payment was a one-off settlement after the Cabinet, under the then Pakatan Harapan administration, decided on Dec 19, 2018, to end the project delivery partner (PDP) agreement on the grounds of national interest.
In a written parliamentary reply to Isnaraissah Munirah Majilis (Warisan-Kota Belud) on Wednesday (Oct 29), he said the termination notice was issued on April 22, 2019, before the agreement officially ended on Sept 22 that year.
According to The Edge Malaysia’s report, BHPSB had been appointed in 2016 under the then Barisan Nasional-led federal government to oversee Phase 1 of the 706- toll-free Sabah portion of the Pan Borneo Highway.
Following the change in federal administration in 2018, the project reverted to the conventional contracting model, with the Works Ministry assuming responsibility for its implementation.
Nanta said BHPSB had received RM700.99 million for its project management role before the agreement was terminated.
Of this amount, RM66.92 million, inclusive of tax, was paid in management fees, while RM634.07 million covered reimbursable expenses. The management fee was calculated at 5.5 per cent of progress payments to contractors for the project’s work packages. Reimbursable expenses comprised RM146.39 million in operating costs, RM16.64 million in capital expenditure, RM448.36 million in consultancy fees and RM22.69 million in goods and services tax (GST).
BHPSB is 60 per cent owned by Warisan Tarang Construction Sdn Bhd, while the remaining 40 per cent is held by a joint venture between UEM Group and MMC Corp Bhd. Warisan Tarang has been linked to Sabah Governor Tun Musa Aman. – DayakDaily
