Sabah state government agreed to the need for the power plant to cater to the electricity demand in the east coast, but was adamant the previous proposed location in Silam, Lahad Datu, was no longer appropriate.

Sabah Government, Energy, Water and Communications Minister, said :

The state government will discuss in detail on the matter (on the new coal-fired power plant location) and they will come back to SESB. Hopefully, this can be resolved in two or three weeks’ time.

It was crucial to set up a power plant in Sabah’s east coast to balance the distribution of power supply throughout the state. Currently, the east coast was relying on an old diesel power plant which generates about 20 megawatts while the extra demand for 180 megawatts was being supplemented from power plants in the west coast through the east-west grid.

Sabah Government make plans for expand coal exploration and distribution. For future government want to into market and trade and then growth coal exploration to growth profit from coal mine export. Other plans, Sabah goverment want to enough existing power and electrical.