KOTA KINABALU: Sabah Electricity Sdn Bhd (SESB) has agreed to provide stable and reliable power supply at an attractive rate to one of Sabah's largest current foreign investors, SK Nexilis.
A memorandum of understanding for the electricity supply agreement was signed between SESB and the South Korean company here on Monday (July 17).
SESB chairman Datuk Seri Madius Tangau said the special tariff was exclusive for SK Nexilis as well as other special privileges once the company is fully operational.
He said the company, investing RM2.3bil by building a copper foil plant and other facilities at the Kota Kinabalu Industrial Park (KKIP) area, would be the state's largest power consumer.
"We estimate a 70MW power usage with up to RM122mil power bill per year and a 10.05% sales increase per annum from this company," Madius added.
He said power supply to SK Nexilis had started in March this year with, among others, SESB providing a 132kV underground cable to the company.
To reduce the cost of the power supply project, SESB had identified the nearest injection points with a RM33.7mil project value contract sealed, he said.
Madius said the project was fast tracked to six months as opposed to the standard operation period of 18 months.
He said the project started on June 23 last year and was completed on Feb 22 this year.
Works started on March 2 successfully, he said, adding the completion of this project enables SK Nexilis to operate more efficiently and help to build Sabah's economy.
Also present during the signing ceremony was state Industrial Development Minister Phoong Jin Zhe.
