Under the agreement, Sabah will import an initial 30MW to 50MW for 15 years via a 31km 275kV double circuit transmission line that will run from Lawas in Sarawak to Mengalong in Sipitang, Sabah.

The interconnection is expected to begin operation by the end of 2023 once the project is completed under the SESB Cross Border Transmission Project Plan and when the Sarawak Energy Northern Agenda connects Miri to the northern towns of Limbang and Lawas.

State utility company Sabah Electricity Sdn Bhd (SESB) inked the agreement today with Sarawak Energy Berhad’s (SEB) subsidiary, Syarikat SESCO Berhad.

At the signing ceremony held virtually, chief minister Hajiji Noor said the Sabah government welcomed the initiative as it would boost the state’s power supply system.

“It is an effort that will help spur Sabah’s development as underlined in the five-year development Hala Tuju Sabah Maju Jaya (SMJ) plan launched earlier this year,” he said in a statement later.

“A stable electric supply is essential to ensure the success of the SMJ agenda that centres on three main thrusts, namely agriculture, industrial and tourism.”

There was no mention of the selling price agreed between SESB and SEB.

Hajiji also said the agreement marked an important first step towards realising the vision of a common goal for the Brunei-Indonesia-Malaysia-Philippines-East Asean Growth Area.

This involves linking infrastructures among Asean countries through the Asean Power Grid, which will directly improve the economy of all countries involved.

The agreement was signed by SESB chief executive officer Abdul Nasser Abdul Wahid here  and SEB group CEO Sharbini Suhaili, representing Syarikat SESCO Berhad, in Kuching.

The ceremony was also witnessed online by Sarawak chief minister Abang Johari Openg from Wisma Bapa Malaysia Petra Jaya in Kuching.