The RM5 billion Merdeka PNB 118 mega-tower project is facing setbacks which may result in possible delays to its completion.

Citing sources, The Edge reported that there were problems with the foundation works which required rectification.

However, it is not clear what the problem was, or how long it would take to fix.

“The last I heard, a couple of months back, the issue had not been resolved,” The Edge quoted a corporate source as saying.

The source added that piling and foundation issues are not unusual in the construction sector.

Another source told the business daily that “PNB, the contractor or someone else" will have to pay for additional costs brought on by the remedial works.

The first phase of the project owned by Permodalan Nasional Bhd (PNB), includes the 118-storey tower set to be the tallest building in Southeast Asia, and a shopping mall, and is slated to be completed by 2020.

Last Friday, PNB Merdeka Ventures released a statement which said that the project was progressing within its budget and was on schedule for completion by 2020.

“To date, the piling and foundation works for the tower and the perimeter diaphragm wall for the main car park have been completed.

"Currently, the diaphragm wall work for the car park beneath the linear park is in progress, while the excavation works and the bore piling works at the car park area have been completed at the stages of 25 percent and 60 percent respectively.

“The preparation works for the raft foundation of the iconic tower are proceeding with 30 percent of the raft reinforcing steel placed to date.

"The next major milestone for the project will be the placement of the concrete for the main tower raft foundation in October 2016.” the PNB unit said.

Contractor Pintaras Jaya had targeted to complete the RM74 million foundation works in about a year, after it was awarded the contract in March 2014.

The Edge report notes that Pintarasa Jaya had been making losses for the last five quarters, and its Bursa filings note that it had faced “unexpected” additional costs on a “particular completed project” for its review of third and fourth quarter 2016 earnings.

The 7.6-hectare Merdeka PNB 118 project is situated between Stadium Merdeka and Stadium Negara.

Critics have said that it is wasteful, but Prime Minister Najib Abdul Razak defended the mega-tower, saying it would have a multiplier effect on the economy and generate business opportunities for all races.