KOTA KINABALU, March 21 -- The Pan Borneo Highway project will continue without the participation of the private sector, said Sabah Chief Minister Datuk Seri Shafie Apdal.

Responding to a report in The Edge that the federal government would drop the project delivery partner (PDP) model in favour of a turnkey contractor, Shafie said talks between his administration and Putrajaya were instead leaning towards a government takeover.

"We have discussed at length with our colleagues in KL - Finance Minister Lim Guan Eng and my friend from Sarawak, Baru Bian," he said when speaking to reporters after launching the Heart of Borneo conference here today.

He said agencies such as the Works Department would take over the physical work, with the F...