GEORGE TOWN: Lim Guan Eng says the project delivery partner (PDP) model for infrastructure projects is okay as long as it is based on open tender, following criticism from former works minister Fadillah Yusof over Putrajaya’s recent decision in the Pan Borneo Highway project.
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The finance minister said in the case of the Sarawak stretch of the Pan Borneo Highway, the PDP had to be cancelled as it was appointed by the previous government through direct negotiation, which he said led to inflated costs.
“The earlier PDP agreement was signed without an open tender beforehand, that is why the price was inflated.
“There is nothing wrong with the PDP model, so long as it is done via an open tender. There is a world of difference compared to open tender and directly-awarded projects during the previous regime,” he told FMT.
The Barisan Nasional government started the Pan Borneo Highway project in June 2015, with 2,333km of road to be built connecting Sabah and Sarawak. The Sarawak sector will see 786.4km of roads to be built.
On Sept 20 last year, the government terminated PDP Lebuhraya Borneo Utara Sdn Bhd, who was entrusted to build the Sarawak stretch of the highway.
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Opposition leaders have hit out at Lim over the removal of the PDP from the Sarawak highway, and asked why the same model was allowed in the RM46 billion Penang Transport Master Plan (PTMP).
Lim, who is also the former Penang chief minister, said in the case of PTMP, the PDP was selected using open tender and overseen by international accounting firm KPMG.
He questioned why the criticism was coming from Fadillah and former prime minister Najib Razak, and not the Sarawak government.
Fadillah had said the Sarawak government had “no choice” but to agree to rescind the earlier agreement.