Sabah Electricity urged to explain why Lahad Datu BESS project went to a higher bid


KOTA KINABALU: Parti Warisan says Sabah Electricity Sdn Bhd (SESB) should be transparent and accountable over the recent award of a RM645mil battery energy storage system (BESS) solar project in Lahad Datu.

Party president Datuk Seri Mohd Shafie Apdal said there was concern over the project being awarded to MSR Green Energy Sdn Bhd (MSR-GE) and hoped SESB chairman Datuk Seri Wilfred Madius Tangau would explain the reasons.

Shafie said he had learned that a reputable China-based company had submitted a lower bid while still meeting the technical requirements for the project.

"I urge Madius and SESB to explain why a higher bid was chosen when there was a more cost-effective option," he said here on Sunday (Dec 29).

"Sabahans deserve a transparent and justifiable decision, especially when public funds and their livelihoods are at stake while ensuring value for money is essential when undertaking projects of this scale.

“By sharing the details of the evaluation process, SESB can reassure Sabahans that every effort was made to secure the best deal for the state,” he added, calling for an independent review of the tender process.

Shafie noted that projects such as the BESS facility shaped Sabah's energy future, and the state must get them right.

He pointed out that the current electricity tariff structure in Sabah places a disproportionate burden on consumers, particularly low-income households.

He said Sabahans pay 17.5 sen/kWh for the first 100 kWh, but this increases to 33 sen/kWh for the next 100 kWh and up to 47 sen/kWh for consumption above 1,000 kWh.

In comparison, he said electricity tariffs in Peninsular Malaysia for similar usage are significantly lower.

He said many rural households rely on SESB for electricity but face frequent outages and inefficiencies while paying the same rates as urban areas.

"This compounds the burden on rural populations," he said, adding that businesses were also affected.

Shafie also said the high costs charged to commercial users drove up industries' operating expenses, which were then passed on to consumers through higher prices for goods and services.

"Every ringgit overspent on the BESS project will inevitably trickle down to consumers too, worsening the financial situation for Sabahans," he said.

He urged SESB and Madius to reveal the valuation criteria for the project to ensure public confidence in the process.

In October, Madius had said the selection process for the project was a thorough one, but ultimately decisions for projects worth over RM100mil were the responsibility of Tenaga Nasional Berhad.

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