Delay in payments to Pan Borneo Highway contractors affecting work

Delay in payments to Pan Borneo Highway contractors affecting work

Works Minister Baru Bian urges Lebuhraya Borneo Utara to urgently look into the problem.

Works Minister Baru Bian (centre) accompanied by Batu Lintang assemblyman See Chee How (left) and Saratok MP Ali Biju (right) at the press conference.
KUCHING:
Late payment of claims to contractors by Lebuhraya Borneo Utara (LBU) has resulted in delays to the Sarawak Pan Borneo highway project, Works Minister Baru Bian said today.

Speaking to reporters after meeting the affected contractors, he said they had not been paid from July till September this year.

“If these contractors are not paid on time, how can they proceed well?

“They have to pay for the facilities and bank overdrafts. A huge amount of interest would be charged if they fail to make these payments on time,” he said.

It is understood that the delayed claim payments for contractors amount to about RM50 million to RM70 million.

According to the contractors, they were supposed to receive the payment within 80 days.

Baru hoped LBU would look into the complaints made by the contractors and pay them promptly.

Baru said once the works ministry takes over the project on Feb 19 next year, they would try their best to make all payments to the contractors within 30 days.

He said another problem that had been causing delays to the project, was the relocation of utilities such as pipes as well as telecommunications and power cables by Konsortium URW.

“I understand that the removal of utilities was sub-contracted out to Konsortium URW. Therefore, I urge them to work on this to avoid further delays in the highway project,” he said.

Baru said he had told the contractors to provide sufficient signage, lighting and blinkers for the safety of road users at construction areas.

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