In a significant step towards bolstering Sabah’s renewable energy (RE) infrastructure, two Sabah government-linked companies (GLCs) have signed agreements with SBH Kibing Solar New Energy (M) Sdn Bhd for the development of a RM7.2 billion solar glass manufacturing plant in Kimanis.
The exchange of the agreements marked a major milestone for the state’s economic growth.
In a statement from the Sabah Chief Minister’s Department, Chief Minister Datuk Seri Hajiji Haji Noor said the new investment is significant in generating further economic growth for Sabah and creating employment opportunities for the local communities.
The first document exchange involved a sublease agreement between SBH Kibing Fokasrama Sdn Bhd, a wholly-owned subsidiary of the Sawit Kinabalu Group.
The agreement is expected to pave the way for developing of the solar glass manufacturing plant and is set to become one of the largest facilities of its kind in the region.
The development is aimed at expanding Sabah’s RE infrastructure, enhancing its global solar energy market position and complementing the company’s existing plant at the Kota Kinabalu Industrial Park (KKIP).
Additionally, the new solar glass facility also highlighted SBH Kibing’s commitment to RE growth and establishing a key manufacturing site in Sabah.
The second key agreement exchanged was the Heads of Agreement between SBH Kibing and Sabah Energy Corporation Sdn Bhd (SEC) to supply 45 million standard cubic feet per day of natural gas to support the operations of the new plant.
“As Sabah’s primary natural gas provider, SEC continues to play an important role in driving regional economic growth through reliable and cleaner energy solutions,” the statement wrote.
Earlier, Gamuda Bhd entered into a joint venture (JV) with Conlay Construction Sdn Bhd and has been appointed as the total development contractor for the Ulu Padas Hydroelectric Power Plant in Sabah.
According to Gamuda, it received the letter of award from Upper Padas Power Sdn Bhd (UPPSB), in which Gamuda holds an indirect 45% stake via its JV entity UPP Holdings Sdn Bhd.
The development contract will be undertaken by an unincorporated JV comprising Gamuda and Conlay with 75% and 25% interest, respectively.
“The total contract value is RM3.05 billion, with a scheduled commercial operation date to be on or before 31 December 2030,” Gamuda said.
The scope of work includes the design, construction, testing and commissioning of a 187.5 megawatt (MW) hydroelectric plant involving a roller-compacted concrete dam, main and secondary powerhouses, a water conveyance system, project access and other permanent facilities.
Upon completion, the project will deliver an average of 1,052 gigawatt (GWh) of clean energy per year, boosting Sabah’s dependable energy capacity by approximately 15% and doubling the state’s RE mix, ultimately contributing toward Sabah’s goal of achieving around 35% of RE share in its generation mix of 2035.
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