By WU VUIDE
KOTA KINABALU: Chief Minister Datuk Seri Hajiji Noor said it was not correct that Kerjaya Kagum Hitech JV Sdn Bhd failed to implement the Ulu Padas Dam project.
In fact, he said the project underwent a long process that included changes in shareholding, stringent technical assessments, delays by both the Federal and State governments, and the impact of the Covid-19 pandemic.
He made the clarification when replying to Lamag Assemblyman Datuk Seri Bung Moktar Radin who wanted to know the justification for allowing Kerjaya Kagun to remain involved in the dam project despite having failed to implement it since 2015 during the question-and-answer session at the State Legislative Assembly sitting here yesterday.
Hajiji said there are several key factors to understand including the project was awarded via a Conditional Offer Letter by the Ministry of Energy, Green Technology and Water on 13 July 2015, with equity holdings comprising Kerjaya Kagum at 60 percent, Sabah Electricity Sdn. Bhd. at 20 percent, and the State Government at 20 percent.
However, following Sabah Electricity Sdn Bhd’s decision to reject its shareholding, he said the State Government, on 9 June 2016, appointed Sabah Energy Corporation Sdn Bhd as the holder of a 40 percent stake representing the State Government through a special purpose vehicle (SPV), namely Upper Padas Power Sdn Bhd.
He said the project had undergone a stringent evaluation process from December 2015 to March 2017 by the developer on the engineering data previously prepared by Sabah Electricity, which needed updating.
From June 2017 to June 2019, he said in-depth studies were carried out, including a special environmental impact assessment (SEIA), mineral clearance, soil investigation, and land survey work, including light detection and ranging (LiDAR) surveys.
“However, on 1 October 2018, the project was postponed by the Ministry of Energy, Science, Technology, Environment and Climate Change,” he said.
On 25 July 2019, he said the State Government approved the continuation of the project by Upper Padas, and subsequently, on 13 February 2020, the Federal Cabinet granted approval for the project to proceed.
“When the world was struck by the Covid-19 pandemic and the Movement Control Order (MCO) was enforced, the project was once again delayed from 18 March 2020 to 1 November 2021, directly restricting movement and delaying on-site physical works,” he said.
On 28 January 2022, he said the developer received an initial letter of notification (ILON) from the Ministry of Energy and Natural Resources confirming the project’s initial tariff rate.
On 3 January 2024, regulatory authority over electricity supply throughout Sabah was transferred from the Energy Commission to the Energy Commission of Sabah, he added.
“These include tariff setting and legal procedural compliance,” he said.
Finally, he said on 2 September 2024, the Energy Commission of Sabah issued the letter of notification (LON) for the final tariff, following approval from the Sabah Energy Council on 22 August 2024.
“Currently, meetings and discussions regarding the power purchase agreement (PPA) with Sabah Electricity are ongoing and expected to be finalised by June 2025,” he said.
Meanwhile, he said financial close is projected for September 2025, and the project completion is scheduled for December 2030, as stipulated by the Energy Commission of Sabah.
The Ulu Padas Dam Project is expected to be fully completed by 2030, and, together with existing and planned power generation projects, it will ensure that Sabah’s generation reserve margin remains above 25 percent for the state grid, which connects electricity supply systems across all districts in Sabah and Labuan.
“Once fully operational, the Ulu Padas Dam will also help resolve Sabah’s water supply issues through the Ulu Padas water supply scheme (SBAUP), which has the potential to provide 6,000 million litres daily, meeting water demand for up to 100 years,” he said.
Additionally, the Ulu Padas Dam Project has the potential to generate up to 200 megawatts of floating solar power on the lake created by the dam.
“A water catchment area of 4,000 hectares will serve as a site for forestry and freshwater fisheries research, as well as ecotourism.
“The State Government, through Sabah Energy Corporation, stands to gain dividend returns exceeding RM3 billion over 40 years and will collect forest reserve occupation permit fees through long-term licensing agreements with the Sabah Forestry Department.
“The dam will serve as a water flow regulator for the 72-megawatt Pangi Dam during dry seasons, boosting its power generation,” he said.
The issue of terminating Kerjaya Kagum does not arise, as the company is not the main contractor for the Ulu Padas Hydroelectric Dam project.
“The company merely holds a 15 percent stake in the project developer, Upper Padas.
“The remainder is held by Gamuda Berhad (45 percent) and Sabah Energy Corporation, which is wholly owned by the Sabah State Government (40 percent),” he said.
