KOTA KINABALU, March 15 -- Sabah has signed a Memorandum of Understanding (MoU) with a China-based Fortune 500 company to potentially implement a RM17 billion flood mitigation, irrigation and drainage project in the state.

The Sabah Irrigation and Drainage Department (DID), on behalf of the Sabah Agriculture, Fisheries and Food Industry Ministry, signed the MoU with Shaanxi Construction Engineering Group Corporation Limited's Malaysian subsidiary, Shaanxi Construction Engineering (Malaysia) Sdn Bhd (SCEM), earlier today to help address Sabah's perennial flood, water and ultimately food security issues.

"Due diligence is expected to commence by the fourth quarter of the year. They will be studying some 11 rivers to see how they work, and...