Sabah awaits consultant's report on water corporatisation

Sabah DCM Masidi signed a plaque to signify the launching of Babagon dam floating solar farm

KOTA KINABALU: The Sabah government still intends to corporatise the state Water Department, said Deputy Chief Minister Datuk Seri Masidi Manjun.

"As I recall, at the last Cabinet meeting before the (17th Sabah general) election, we requested the Water Department to appoint a consultant to conduct a study to be presented at a Cabinet meeting.

"So, we are still waiting for a report from the Water Department. But definitely, the state government has agreed that it needs to be corporatised to make it more efficient," he told the media at Babagon Dam near here after the launching ceremony of two solar power plant projects.

Last year, the matter was also raised by Chief Minister Datuk Seri Hajiji Noor, who said the purpose of the corporatisation was to tackle widespread water woes.

He said the move would allow better management of resources and reduce losses caused by illegal connections, which have pushed Sabah’s non-revenue water rate to almost 60 per cent — one of the highest in the country.

Earlier during the launching, Masidi, who is also the state Finance Minister, said a company must raise its own capital and ensure that returns on investment are strong enough not only to make a profit but also to keep the organisation sustainable and protect jobs.

"The government will no longer inject capital funds into the utility company. Beyond basic operations, the company must finance its own growth.

"To expand, it has only two main options: manage and develop its own assets to generate funds, or borrow money. Either way, the company must depend on its own financial performance rather than relying on public funding."

The 28 MWac solar projects — one at Babagon Dam and another at Batu Sapi in Sandakan — will be implemented by government-linked company Jetama Sdn Bhd.

Present were Sabah Energy Commission (ECoS) chief executive officer Datuk Abdul Nasser Abdul Wahid and Jetama chief executive officer Datuk Ahmad Naim Uddang.