Dawn of a New Era in Road Management and Maintenance – Workshop on Performance-Based Contracts Opens in Kuching

Dawn of a New Era in Road Management and Maintenance – Workshop on Performance-Based Contracts Opens in Kuching

Kuching (Sarawak), Monday, 25 March 2019 – The International Roads Federation (IRF) and Cahya Mata Sarawak Berhad (CMSB) co-organised workshop titled ‘Performance-Based Contracts’ (PBC) – with the tagline ‘Spurring Growth, Connecting Sarawakians’ – at the Borneo Convention Centre Kuching. This marks an important milestone towards a new gold standard and global benchmark in quality for the management and maintenance of roads.

The workshop is designed to help industry players stay on top of a fast-evolving and ever-innovative industry, which will condition the future of infrastructure development. By bringing together the industry leaders in the field of PBCs, the workshop aims to create a world-class benchmark for others to follow.

Offering an objective and balanced view on PBCs and alternative road management systems, the 2-day event is targeted at road and transport agencies’ executives, engineers and managers involved in highway maintenance, private consultants and contractors, engineering firms and service providers. It’s billed as an open and collaborative platform to share, discuss and determine strategies to improve the approach towards road management and maintenance.

The event was officiated by the Assistant Minister for Coastal Road, YB Datuk Haji Julaihi Bin Haji Narawi and comprise presentations by some of international community’s distinguished and influential industry experts in PBCs.

Cahya Mata Sarawak Berhad, through its wholly-owned subsidiary CMS Roads Sdn Bhd, was the first proponent for performance-based road maintenance contract in Malaysia, and shown it to be a shining example of success. This format is now attracting interest as an example to be migrated for other Malaysian road concession renewals or even for government agencies who have not yet opted for maintenance to be privatised, placing greater emphasis on the workshop as a focus for national attention.

The event programme included two particularly distinguished speakers representing the Asian Development and World Banks – Dr. Asif Faiz, a PBC advisor and Janusz Sobieniak, a PBC consultant. Dr. Asif Faiz is a former World Bank Highways Adviser and Infrastructure Sector Manager with some 40 years of experience in designing, managing and implementing transport development policies, programmes and projects in more than 40 developing countries. Janusz Sobieniak is an experienced and versatile Transport Engineer who has worked for 30 years with donor agencies on transport sector projects in more than 40 developing countries in Asia, Africa, Europe, Latin America and the Caribbean.

In opening the 2-day workshop, YB Datuk Haji Julaihi, highlighted some of the benefits of PBCs, which include: annual savings of 10% to 20%, faster and better response times, higher maintenance standards, simpler annual budgeting due to fixed rates for different types of work, the transfer of obligations and risks of work management from the State to the contractor and that they enable the contractor to incorporate new technologies and equipment.

In his welcoming address, Dato Isaac Lugun, CMSB Group Chief Executive Officer – Corporate, said: “This year’s theme of “Spurring Growth, Connecting Sarawakians” is very apt for this workshop.  CMS is proud to play an important role in maintaining nearly 20% of the State Roads in Sarawak [and we have] continuously improved performance as evidenced by the independently verified Road Maintenance Index.”