By Fiqah Roslan

Not a cent from RM2.3 bln paid to Sabah IPPs – Max

KOTA KINABALU: Allegations made by the opposition that RM2.3 billion of capital expenditure (CAPEX) was paid to independent power producers (IPP) here are false.

Energy, Green Technology and Water Minister Datuk Seri Panglima Dr. Maximus Johnity Ongkili said the allocation was given by the federal government to improve electricity supply system throughout the State.

“That allegation is not true. Not even one cent was given to IPPs in Sabah. The CAPEX is specifically to raise the quality of electricity supply by Sabah Electricity Sdn Bhd (SESB),” he said, during a press conference after officiating at the Sabah Electricity Supply Open Day here, yesterday.

He said the expenditure was used by SESB to increase power generation by completing wire installation and maintenance, among others, in urban and rural areas.

Maximus also encouraged the public to report instances of electricity theft, which had been escalating of late.

“Until today, SESB has experienced a loss of over RM40 million as a result of this irresponsible activity,” he said.

Meanwhile, Maximus clarified that his ministry is not involved in a private company initiative in Tawau, regarding coal-fired power plant.

Although there had previously been suggestions on the importance of having a coalfire power plant in the State, the matter was rejected by the State government.

“Any coal-related activities here must gain the approval of the State government. In my opinion, the use of coal could reasonably meet the capacity of energy consumption as in West Malaysia. But it (coal) should be imported, for example, from North Kalimantan, and not mined in the State,” he said.

As for geothermal power generating in Tawau, Maximus clarified that the private company running the project had already obtained approval from KeTTHA.