Kota Kinabalu: Petronas and Tenaga Nasional Berhad (TNB) will work out an arrangement to bring Liquefied Natural Gas (LNG) from Bintulu to generate alternative power supply to Sabah's East Coast.Chief Minister Datuk Seri Musa Aman said Prime Minister Datuk Seri Najib Tun Razak gave this instruction during the recent National Economic Action Council (NEAC) meeting.
He said prior to the decision, he together with Deputy Chief Minister Tan Sri Joseph Pairin Kitingan and Industrial Development Minister Datuk Raymond Tan had met Najib to discuss the proposed coal-fired power plant.
Speaking at a Chinese New Year luncheon hosted by Parti Gerakan Rakyat Malaysia here Saturday, attended by Gerakan President Senator Tan Sri Dr Koh Tsu Koon, Sabah Gerakan Chief Datuk Gordon Leong, Vice Presidents Datuk Raymond Tan and Tan Sri Liew Yun Fah, and BN component party leaders, he said:
"I know that we have a critical problem in terms of providing stable electricity supply to the people in the East Coast, and not many know that TNB was subsidising RM2 million a day for diesel used in the various IPPs (independent power producers) there.
"This is about RM700 million a year, so the Prime Minister told me that the State Government has to decideÉduring his last visit here, I together with Pairin and Minister-in-charge Raymond (Tan) decided to talk to him about the coal-fired power plant."
The Prime Minister was willing to listen "if there is a good reason," he said.
Musa said he told Najib that the people in Sabah were not happy about it and, at the same time, he informed Najib that Sabah has one of the best managed ecosystems in the region.
Musa, who is also State Finance Minister, said Tan had also discussed with Petronas and TNB on the possibility of laying the gas pipeline to the East Coast which he was told could be done but very costly.
"But to me the subsidies are also costly," he said, adding that after further discussion, another arrangement could be made, that is for Petronas to ship the LNG from Bintulu to the East Coast instead of using the pipeline.
Therefore, during the NEAC meeting, which was attended by all Federal key Ministers and top officials of related government agencies and government-linked companies (GLCs), Najib issued the order to Petronas and TNB to work out the plan.
"So I say it was a good Valentine's Day gift (because it was on Feb 14)É Sarawak takes our gas and gives us their LNG, so it's more or less fair," he added.
Musa said after giving the directive, Najib told the Ministers at the NEAC meeting that "we must also listen to the State that is our fixed deposit."
In this respect, Musa said he hoped Koh, who is also the Minister in the Prime Minister's Department, would be able to convey to Najib that the Sabah people are very grateful.
"The people of Sabah know how to be gratefulÉif you give us more the people of Sabah know how to respond.
"I told the Prime Minister that Sabah is the second biggest State in the country, so we need a lot of funds to develop and during the second rolling fund for the 10th Malaysia Plan, Sabah is being allocated billions of ringgit, so this is what we want. What for we want to fight," he said.
Musa said in Sandakan he was met by people who were very happy with the Government's decision.
"We are grateful to the Prime Minister. This is a Prime Minister who listens to the rakyat," he said to applause from the floor.
"We will ensure BN will get a bigger majority in the next election," he said.
