KOTA KINABALU, Nov 16 (Bernama) -- The construction of a dam project at Kampung Kaiduan in Papar will result in more than 1,000 residents in the area to lose their homes, the Sabah State Assembly was told today.

Datuk Abdul Rahim Ismail (BN-Pantai Manis) said although the project, costing RM2.8 billion and also include a water treatment plant in Kampung Maang, Penampang, was to increase water supply to the residents in Kota Kinabalu by 1,200 litres daily, the company which prepared a report on the proposed project did not consult the local residents or the elected representatives in the area.

"Penampang Member of Parliament Tan Sri Bernard Dompok, who is Plantation Industries and Commodities Minister, also said authorities like the Water Department had yet to explain on the project.

“In fact, the YB (Dompok) had also voiced his concern on the ecological effects of the project," he said when debating the Sabah Budget 2010 at the state assembly sitting.