Works Minister Datuk Seri Fadillah Yusof has raised a difficulty faced in the construction or upgrading of the multi-billion ringgit Pan Borneo Highway.

He said people claiming to have native customer right over land earmarked for use as part of the highway were unwilling to part with the real estate.

"We are talking especially about the land without titles which these people claim as native customary rights land. The records with the Land and Survey Department indicate otherwise. The land is actually either road reserve or state land," he said here last night.

Fadillah said these people should allow the land to be used for this "very important project" that would benefit a very large majority of the population because keeping the claimed land for themselves could put in jeopardy the successful completion of the highway project.

He spoke to reporters after attending a briefing given by the Sarawak Public Works Department on the overall progress in the implementation of the RM16.5-billion highway project.

"We have the provision where we can make an ex-gratia payment to them. But, sometimes when we pay, they accept but refuse to move out. This is a big problem for us," he said.

Fadillah said everyone should be reasonable and strive to reach an amicable solution so as not to stall the project.

He said it was comparatively easier to acquire land with title based on the provisions of the law, whereby the owners would be paid compensation based on the official valuation.

He also said that another challenge was the proper removal of ultility facilities so as not to disrupt power, telecommunications or water supply services to the people.

"Their removal to suit the alignment or realignment can be costly and painstaking. We need the experts to do them. We are engaging with the ultility companies on how best to do so," he said.

Fadillah, who is the MP for Petra Jaya, said that under the devolution of power from the federal government to Sarawak, the state would play the lead role in implementing and monitoring the construction of the highway.

There would be ample opportunities for Sarawak bumiputera companies with a company net value of RM6 million to undertake jobs such as putting up and painting of road signages and others, he said.