Sabah inks MoU with Chinese investor to study implementation of flood mitigation projects

Kitingan (middle) witnessing the exchange of MoUs signed between Siraja (second left) and Cao.

KOTA KINABALU: Sabah has inked a memorandum of understanding (MoU) with a China-based Fortune 500 company to conduct due diligence studies on the possibility of implementing flood mitigation projects in the state.

The MoU signing took place on Friday (March 15) between Shaanxi Construction Engineering (Malaysia) Sdn Bhd (SCEM), which is a subsidiary of Shaanxi Construction Engineering Group Corporation Limited (SCEGCL), and the Department of Irrigation and Drainage, on behalf of the state Agriculture, Fisheries and Food Industries Ministry.

According to the understanding, SCEM will conduct due diligence in terms of flood mitigation, irrigation and drainage works in 11 Sabah districts including in the state capital, Penampang, Tawau, Kota Belud and Tenom, among others.

Deputy Chief Minister Datuk Seri Dr Jeffrey Kitingan, who witnessed the signing ceremony, said he was looking forward to the studies that were expected to commence in the fourth quarter this year.

Kitingan, who is also state agriculture minister, said Sabah could secure up to an estimated RM17bil in foreign direct investment (FDI) if the studies proved favourable for the projects to be undertaken in future.

“This is a huge opportunity for us to solve many problems,” he told reporters, after the signing ceremony at a hotel here.

“This is to address the longstanding issue of recurring floods, food security and driving economic development initiatives in the state.

“The infusion of capital (should projects take off) will also stimulate growth across sectors, create employment opportunities, and spur innovation and entrepreneurship and bring about 20,000 job opportunities throughout Sabah.

“But most important is solving our problems on floods, water supply and irrigation system as well as our food security – this will be the ultimate aim for this investment,” Kitingan said.

Signing the MoU on behalf of the Sabah government was state DID director Siraja Bashora while SCEM was represented by its chief executive officer Cao Yue Lei. Also present was state Agriculture, Fisheries and Food Industries Ministry permanent secretary Datuk Robert Stidi.

To a question on the returns for the potential investor, Kitingan said the state could supply river sand to the company.

“We know that all rivers bring sand into the rivermouth, blocking them and causing floods. So, we will give the sand to them as payment, it’s up to them (what they do with it),” he said.

He noted that the state and potential investors have not decided on the areas to carry out the projects.

“That depends on the outcome of the studies. But hopefully we can start after the due diligence, after they study the 11 rivers, then we can sign a memorandum of agreement (MOA) to get the projects going,” he said.

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