Economic reasons over Health and Environmental concerns

Kota Kinabalu (Dec 24, 2008): Sabah Progressive Party (SAPP) former deputy president, Datuk Philip Yong Chiew Lip, today told Tenaga National Berhad (TNB) that its plan to go ahead with the coal-fired power plant in Sandakan will somehow create some environmental and pollution problems to the people of Sandakan.

"I cannot understand why they (TNB) are not considering other options which are environmentally friendly e.g. gas or others." added Yong.

"I read today's Chinese newspapers which quoted the Minister of Tourism & Environmental Development who was shocked that local brick factories are using coal for their furnaces. The minister must be implying that coal burning is highly polluting.

SAPP has issued few press statements against the coal-fired power plant but the local state assemblymen (YBs) and ministers tried to sell this plan to the Sandakan people. However, the people strongly objected to their plan.

Referring to local New Sabah Times as follows....

TNB: Coal-fired power plant vital for east coast

Kota Kinabalu (Dec 24, 2008): Tenaga National Berhad (TNB) is going ahead with its plan to move the cancelled coal-fired power plant project in Silam, Lahad Datu to a new site in Sandakan.

Project director Ahmad Faraid Yahya stressed that the project would benefit the Sabah Development Corridor (SDC) which is the government's initiative to accelerate economic growth and elevate income levels in the state.

"To achieve the desired results in SDC, infrastructure development is imperative. For this reason, the east coast of Sabah must have a steady and stable supply of electricity.

"The development of the east coast will bring about a balanced development. Therefore, the setting up of the 300MW power plant in Sandakan is required and will bring about several socio-economic benefits to Sabahans," he said.

Ahmad also said in terms of business and employment opportunities, more than RM300 million worth of contracts would be sub-contracted to local companies while thousands of skilled or unskilled jobs would be created, either directly or indirectly.

An estimated 3,000 workers would be required during the construction of the plant.

And, when operational, the plant would provide around 200 permanent jobs to Sabahans and there would also be a multiplier effect in the service industries as well as other sectors like transportation and housing, he told reporters during a media briefing at Sutera Harbour Resort & Spa here yesterday.

The power plant, he added, would be a catalyst for economic growth of the industrial zone to be set up in Sandakan.

"The coal-fired power plant will be built by Lahad Datu Energy (LDE) Sdn Bhd in which state-owned companies will have 35 per cent stake as proposed," Ahmad said.

According to him, the project was expected to bring about technology transfer to Sabah, given that its reliable power and availability would enable industries to flourish.

"In essence, it would be a boost to investor confidence," he said.

Meanwhile, LDE senior manager and coal specialist Abu Bakar Ahmad said at present, about 30 percent of the east coast power demand was supported daily by west coast generators.

"This exposes the east coast to the risk of a serious major blackout in the event of an interconnection failure.

"According to Sabah Electricity Sdn Bhd (SESB), there is a pressing need for a base load power plant in the east coast to reinforce generation and supply network to improve the stability of the east and west grid interconnection," he said.

Abu Bakar said a prolonged delay in the commissioning of the proposed plant would expose the area to more frequent blackouts because SESB would still have to depend on the unreliable aging diesel plants and importation of power from the west coast to meet the demand in the east coast.

And, he also said the coal-fired power plant would adopt a clean coal technology using proven techniques and designs used in developed countries.

It would comply with stringent Department of Environment (DOE) requirement, the Environmental Impact Assessment (EIA) which is comparable or better than the world standard.

The power plant would be connected to the SESB Grid through a new 275KV transmission line to be constructed as part of the project.

"LDE is currently carrying out a detailed EIA study in collaboration with UKM and UMS at the alternative site. In addition, we are also committed to an environmental management programme which will be closely monitored by the DOE in order to safeguard the natural wildlife habitats and the surroundings," he said.

Abu Bakar also said the proposed site would be at the POIC Sandakan which is managed by Sawit Kinabalu and is located on a reclaimed land near to the Seguntor River.

The site has sufficient availability of sea water for turbine cooling and FGD operation.

There are already six coal-fired power plants – four in the peninsula and two in Sarawak – strictly adhering to the DOE rules and regulations and successfully generating electricity without any adverse impact to the environment.

"A good example is the TNB plant in Kapar, Selangor which was built in 1988. It has attracted thousands of migratory shorebirds which fly over 24,000 km every year to escape the northern winter," he said.

Also present at the briefing were Sawit Kinabalu managing director Osman Walad, Warisan Harta representative Awang Ismail, Datuk Abdul Rahim of SESB and LDE commercial manager Hasniza Hassan. (The New Sabah Times)

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