Chief Minister Mohd Shafie Apdal said he would be chairing the committee, with state secretary Hashim Paijan and representatives from the infrastructure development ministry and Public Works Department, to see whether the state government should be taking over the utility company.

He said the study would also ensure a win-win situation for the state government and federal government, including Tenaga Nasional Berhad (TNB).

“The state government should first decide on a number of options before a decision to take over SESB is brought to the central higher-ups by next year.

“SESB has a lot of issues and liabilities. However, the state government realises the need to enhance its capability to attract investors to Sabah.

“We need to ensure consistent water and electricity supply and at a reasonable price for them,” he told a news conference at the state assembly building here today.

Shafie said Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin and her delegation, including a TNB representative, had proposed that the state government take over SESB during a meeting last month.

Water concessionaires

On another development, Shafie said the state government had requested that the Sabah finance ministry and state Attorney-General’s Chambers study closely the water concession agreements to ensure that all the agreements were fair.

On Tuesday, the infrastructure development ministry informed that it was in the final stage of reviewing the agreements with the water concessionaires to reduce the amount the state government had to pay to the companies involved.

The ministry revealed that six companies had signed the contracts for a 20-year period to manage the water supply but still could not solve the water problems in Sabah.

The state government is also expected to be able to reduce the total cost to the concessionaires down to RM1 billion if those appointed are hired or overseen by the ministry.