How much cost difference exists between PDP and conventional methods for PBH Sarawak?

Question

Accepted Answer

Government Estimates RM2.865 Billion in Savings for Sarawak Pan Borneo Highway Project

The Sarawak Pan Borneo Highway (PBH) project is estimated to achieve savings of RM2.865 billion by transitioning from the Project Delivery Partner (PDP) model to conventional methods. This projected saving is based on a detailed comparison of development costs between the two approaches. The final realised savings will be confirmed after a comprehensive future evaluation.
Development Cost Under PDP Model

The development cost for the Sarawak Pan Borneo Highway, when utilising the PDP model, was calculated to be RM21.857 billion. This figure encompasses all construction expenses incurred under the PDP framework. The PDP model was in effect until February 20, 2020, marking the end of its contract period.
Projected Savings Through Conventional Methods

Adopting a conventional approach for the project's development is estimated to reduce the overall cost to RM18.992 billion. This represents the projected expenditure, including the costs associated with the PDP up to the conclusion of its contract on February 20, 2020. The difference between the PDP model's cost and the conventional method's projected cost accounts for the substantial estimated savings.
Additional Savings from Abolished PDP Fees

A further estimated saving of RM1.2 billion is anticipated due to the abolition of further Project Delivery Partner fees for both the Pan Borneo Highway Sarawak and Sabah projects. This saving comprises RM0.559 billion for PBH Sarawak and RM0.640 billion for PBH Sabah, representing direct savings from eliminating these fees.

Reading history

Hide →

This history is cleared when the page is closed.

How much cost difference exists between PDP and conventional methods for PBH Sarawak?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends