The Likas Bay reclamation study was the first Detailed Environmental Impact Assessment (DEIA) undertaken in Sabah. DHI's involvement was predominantly associated with the environmental impact study for nearshore borrow dredging and reclamation activities. As part of the Likas Bay Reclamation DEIA, DHI was commissioned to undertake a detailed study of the impact of the reclamation on the salinity balance in the Likas Mangrove System.

The Likas mangrove system is a small mangrove area connected to the sea by a 1 km long drainage channel. It is classified as a special habitat area being a component of the Kota Kinabalu City Bird Sanctuary under th management of WWF and the city council. DHI's activities included water quality sampling, habitat survey and the generation of a high resolution MIKE 21 salinity balance model.

The combination of modelling and knowledge on specific tolerance ranges for different plant and faunal species enabled the prediction of the environmental impacts of the develomnt and the performance of mitigating measures to be assessed. Based on the results of this study, DHI has initiated, in collaboration with the Department of Irrigation and Drainage, a long-term water quality monitoring campaign in the mangrove area.