Sandakan and Tawau Water Supply

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In December of 1992, Timatch Sdn Bhd was awarded a 20-year build, rehabilitate, operate and transfer concession contract by the Sabah State Government for the bulk supply of treated drinking water to the Sandakan and Tawau areas of Sabah. The project was part of a larger package for the privatization of the supply of treated water to Sabah, while distribution was to remain under the authority of the Sabah Water Department. The other two concession holders were Jetama Sdn Bhd which supplied treated water in Kota Kinabalu, and Lahad Datu Water Supply Sdn Bhd, responsible for Lahad Datu and Semporna. Little information was available on Timatch Sdn Bhd, other than it was a small local company. It was reportedly receiving support from Thames Water of the UK. The total cost of its project was RM220 million (US$85.5 million). Operations commenced in June 1993. By the end of 2003, the Sabah state government owed a total of RM648.76 million to the three water concessionaires in the state, RM225.26 million of which was owed to Timatch Sdn. Bhd. The problem was that revenue from bill collections was lower than the amount the government had to pay to the three companies for treatment, mainly because the state-owned distribution company had been unable to control unaccounted for water (UFW) and collect tariffs from consumers. To resolve this issue, the Sabah state government sought to privatize the distribution system beginning in 2002. However, negotiations failed and as of 2005, the government was still trying to resolve the problem. http://www.timatch.net/index2.html

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