The Pan Borneo contract cannot be terminated arbitrarily.

KUALA LUMPUR, 11 Nov: The termination of the contract by companies involved in the construction of Pan Borneo Extension cannot be done arbitrarily because delays in implementation of a work package are not solely due to contractor's shortcomings.

Minister of Public Works Datuk Seri Alexander Nanta Linggi said he should review any extension requests submitted by contractors to identify the cause of delays including restrictions involving government agencies or other factors.

He said so far, only one contract has been terminated following the project's delay after a thorough evaluation was carried out.

"When they demand an extension, we have to look carefully at whether the problem is their fault... this is because there are factors on our side as well.

"For example, the contractor wants to do work but can't get on site because the land reclamation and compensation work has not been completed by the relevant government department", he told reporters after attending a recording of Bernama TV broadcast on Wisma Bernama today.

Nanta said besides the issue of land acquisition and compensation payments, the implementation of work on site is also hampered if utility facilities such as water pipelines and underground cables have not been diverted by the concerned parties because the situation could cause damage.

He said the Ministry of Public Works took proactive steps to set up a monitoring committee, a steering committee and an officer team to avoid wasting time.

"Through this platform, problems on the site can continue to be brought forward and resolved without waiting which results in time being wasted if not properly coordinated", he said.

Nanta said the monitoring of the project was also strengthened through periodic visits by the highest management of the ministry to the construction site as well as close cooperation with Sabah and Sarawak Public Works Department.

He said progress in the implementation of Lebuhraya Pan Borneo work package in Sabah so far has only reached 11.4 percent while projects in Sarawak are almost complete.