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MOU on stones for Pan Borneo Highway
Published on: Saturday, February 24, 2018

Kota Kinabalu: Borneo Highway PDP Sdn Bhd (BHP) has taken a step to ensure adequate supply of stones for its mega project – the Pan Borneo Highway (PBH) Sabah – by signing a Memorandum of Understanding (MoU) with the Sabah Quarry Owners Association (SQOA).

BHP Chief Executive Officer Shahelmy Yahya said the MoU is to ensure Phase 1 of the mega project, which ends in 2021, will get sufficient supply of stones from SQOA members.

"The signing of the MoU is part of our strategy to ensure availability of quality construction material at a reasonable price. It also symbolises the commitment of both parties in ensuring timely delivery of this project within the stipulated time without compromising on the quality.

"As we have mentioned from the very first day, we were appointed as the delivery partner for the PBH Sabah project, which consists of 35 packages covering 706 kilometres from Sindumin, Sipitang all the way to Tawau.

"We estimated that we need 25 million metric tonnes of stone aggregates for the construction of Phase 1 of the project over three years," he said after signing the MoU representing BHP with SQOA, which was represented by its President Datuk Wong Chen Kiong, here, Friday.

Meanwhile, Wong said all the 25 SQOA members would ensure they are able to supply 25 million metric tonnes of stone aggregates for the project, adding that they are currently producing 18 million metric tonnes per year.

With the projected demand for the highway project, he said the quarry sector is projected to create 15,000 job opportunities.

Wong said the signing of the MoU symbolised SQOA's commitment and encouraged all existing and future quarry operators to participate in the project, be it in a form of expansion or setting up of new quarries, especially in areas that have the PBH Sabah project.

Shahelmey said out of 35 work packages throughout the State, seven packages are in the face of construction and five packages would start requiring stone aggregates soon.

"BHP anticipates the peak requirement for the aggregates to begin in the second half 2019 until up to the first quarter of 2021," he added.

Shahelmey also said BHP recently received a principal approval from the Ministry of Finance (MOF) to appoint 10 more packages that would concentrate on the West Coast of Sabah from South West in Sipitang all the way to Kudat.

At the same time, he said BHP is now doing tender on the remaining 18 packages for the East Coast and central part of Sabah (Mile 32, Sandakan up to Ranau).

"It is hoped that by June this year, we would able to complete all the tendering exercises and get all the packages awarded and from there on, the construction of the mega project can go on a full cycle," he said. - Hayati Dzulkifli

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