SABAH has forged a partnership with one of China's premier engineering companies, Shaanxi Construction Engineering Group Corporation Ltd, to address the state’s flood and waterway challenges, potentially attracting investments totaling RM17 billion.
The collaboration was formalised through a memorandum of understanding signed between the Sabah Irrigation and Drainage Department (DID) and Shaanxi Construction and Engineering Group in Kota Kinabalu yesterday.
Deputy Chief Minister Datuk Seri Jeffrey Kitingan revealed that work is anticipated to commence by the final quarter of 2024 and approximately 20,000 employment opportunities are expected to be created along with numerous economic opportunities if the MoU translates into agreement later.
Jeffrey is also Sabah’s minister in the state Agriculture, Fisheries and Food Industries Ministry and the minister-in-charge of the state’s watercourses.
Before any project can commence, the Fortune 500 company will conduct a thorough study on 11 local rivers in the state, aiming to mitigate issues exacerbated by unpredictable heavy rains, floods and an ongoing drought.
"This investment signals Sabah's attractiveness for foreign investments and offers a multiplier effect of up to five times on the state's economy," Jeffrey informed reporters after the signing ceremony.
He emphasised that beyond the monetary investment, the partnership holds promise for addressing Sabah's water, irrigation and food security concerns.
Among the rivers slated for assessment are the Sungai Moyog in Penampang district, Sungai Petagas in Putatan district, and Sungai Likas in Kota Kinabalu district.
Jeffrey noted that excess washed up sands which were creating river blockages and causing floods would be offered in exchange for the Chinese company’s investments into the projects later.
Meanwhile, Jeffrey also extended the state's gratitude to Dr. Ho Choon Hou of Hoch Standard Project based in Singapore for facilitating the connection between DID and Shaanxi Construction through Ho’s network with Asia Fund Space.
Asia Fund Space has also been appointed as the principal consultant for the Shaanxi Construction Engineering Group in Sabah.
Also present was Shaanxi Construction Engineering (Malaysia) Sdn. Bhd chief executive officer Cao Yue Lei.
Shaanxi Construction has over 70 years of experience in construction and infrastructure engineering works. – The Vibes, March 16, 2024
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