POIC takes major step in ensuring water supply reliability with desalination agreement

16 December 2024

KOTA KINABALU: The state-owned POIC Lahad Datu Industrial Park is enhancing its water supply infrastructure in anticipation of a surge in investments.

On December 13 the park took a significant step by signing an agreement that initiates the development of industrial water production through desalination, marking the first such venture in Sabah.

The agreement was formalised between POIC Sabah Sdn Bhd, the developer of the industrial park, and Jetama Sdn Bhd, a state-owned company with a longstanding reputation in water supply infrastructure.

During the 12-month term of the agreement, Jetama will conduct a comprehensive study of the current water supply situation at POIC Lahad Datu and evaluate the feasibility of implementing an additional water supply system.

Since its inception, POIC Lahad Datu has faced various challenges related to water supply; however, its factories have managed to operate with minimal disruptions. Currently, the park houses 42 operational factories, which collectively consume about 3 million litres of water per day.

The state water authority is actively pursuing several initiatives to enhance water distribution and improve supply reliability.

The Jetama modular desalination plant is designed to process both seawater and brackish water, initially capable of producing 500,000 litres of freshwater per day, with the potential to scale up to a maximum capacity of 4 million litres per day.

Given the noticeable increase in investor interest, a proactive approach is vital to maintain this momentum.

Just this week, POIC Sabah secured a deal for land to facilitate the construction of a factory specializing in aviation fuel, biodiesel, and carbon-based products derived from oil palm biomass.

This RM400 million investment is anticipated to catalyse a multi-billion-ringgit economic sector in Sabah.

Datuk Fredian Gan, Group CEO of POIC Sabah, who signed the agreement, emphasised that this collaboration with Jetama represents a strategic initiative to ensure reliable water supply for industrial usage.

Furthermore, this initiative will significantly bolster the government's efforts to secure a stable water supply for domestic needs in Lahad Datu.

"This project will ease the demand on the Sabah Water Department by reducing the need to deliver around 3 million litres per day of treated water to the industrial park, thus allowing for more treated water to be available for domestic use in Lahad Datu," he stated.

Datuk Yussof Abd Manan @ Yuma, Chairman of Jetama Sdn Bhd, represented Jetama during the signing ceremony.

The event was also attended by POIC Sabah Chairman Datuk Seri Yong Teck Lee, along with the Board of Directors and senior management team members of POIC Sabah.