How will the Works Ministry ensure timely payments after February 2020?

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Ministry of Works to Ensure Timely Payments After February 2020

The Ministry of Works will take over the Pan Borneo highway project in February 2020, at which point payments to contractors are assured to be made within 30 days. This transition aims to resolve the current payment delays experienced by contractors, who have not received claims since July. The Ministry of Works has not yet detailed the specific mechanisms it will implement to guarantee this 30-day payment window.
Project Takeover by Ministry of Works

Currently, the Lebuhraya Borneo Utara (LBU) functions as the project delivery partner responsible for managing payments for the Pan Borneo highway project. However, the Ministry of Works is scheduled to assume full control of the project in February 2020. This handover is intended to streamline project management and financial processes.
Current Payment Delays Affecting Contractors

Contractors involved in the Pan Borneo highway project have faced significant payment delays, with claims outstanding for approximately three months. These delays have been ongoing since July, impacting the ability of contractors to proceed effectively with their work. The Minister of Works acknowledged these issues and expressed sympathy for the contractors' situation, noting the substantial sums involved.
Assurance of Future Payment Timeliness

Following the Ministry of Works' takeover in February 2020, assurances have been given that all payments to contractors will be processed within a 30-day timeframe. This commitment aims to provide financial stability and predictability for contractors, thereby facilitating the smooth progression of the highway project. The specific operational changes or new procedures to enforce this 30-day payment rule have not been elaborated upon.

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How will the Works Ministry ensure timely payments after February 2020?

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