Sabah has plans to regain control of SESB
KOTA KINABALU: Sabah is looking to revive its plan to take over Sabah Electricity Sdn Bhd (SESB) by first setting up the Sabah Energy Commission.
This was the plan set in motion after Chief Minister Datuk Seri Hajiji Noor (pic) co-chaired a series of committee meetings in the nation’s capital on Thursday (Aug 25).
Hajiji co-chaired the meetings with Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan and Minister in the Prime Minister’s Department Datuk Seri Mustapa Mohamed.
During the first meeting of the steering committee on the handing over of the electric supply regulatory power and SESB to the Sabah government, it was agreed that the Energy and Natural Resources will take up the state’s plan to take over SESB in two stages to the Federal Cabinet.
Hajiji said the state government first needed to set up its own Sabah Energy Commission so that the electricity supply regulatory authority can be transferred from the Federal Government to Sabah.
After that, he said, the state expected to take back SESB with zero liabilities once the SESB Transformation Plan is completed within five to seven years from now.
“Hence, coordination and cooperation from all are needed to ensure the legal process is implemented smoothly,” he said in a statement on Thursday (Aug 25).
Meanwhile, the Chief Minister also discussed the proposed programmes and projects to be implemented in Sabah under the Sabah Power Supply Generation Development Plan (2022-2041).
He said the Sabah government proposed that the 100 Megawatt Combined Cycle Power Plant project, which has been tendered out, be built in Kimanis, which has sufficient gas resources readily available.
He added the state government also supported the New Sabah Hydro application for the proposed development of the 170 Megawatt Hydroelectric Plant “Run of River” Concept at Sungai Maligan and Hulu Sungai Padas, Sipitang, which has been tabled and approved by the Sabah Cabinet.
Hajiji, who is also Sabah Finance Minister, said the proposed 135 Megawatt New East Gas project should be discontinued if the tariff was not competitive.
He also said that the Southern Link Distribution project must be implemented as one package and not in phases through direct funding under the 12th Malaysia Plan by 2027.
“The state government also proposed that the Federal government discontinue the Trans Sabah Gas Pipeline (TSGP) because of no gas supply and instead the contractor that has been paid for the project to do the Southern Link project,” he said.
Later, Hajiji also co-chaired the steering committee meeting on the handing over of the management and control of its gas resources with Mustapa at Grand Millennium in Kuala Lumpur.
He said the state government’s move to take over the management and control of the gas supply in Sabah was in line with the various related initiatives that have been planned and implemented in the state.
“It will allow us to have direct involvement in oil and gas industry activities for the benefit of Sabah and the people,” he said.
“The Sabah government is committed to ensuring the gas industry in Sabah will continue to be developed through the related policies without compromising on the safety and service efficiency to consumers as well as ensuring no disruption in operations during the transition period,” he said.