Gamuda wins Sabah power project

Gamuda noted the power project involved the construction of a dam in the Tenom and Sipitang districts of Sabah.

PETALING JAYA: Gamuda Bhd’s joint-venture (JV) firm, Upper Padas Power Sdn Bhd (UPPSB), has signed the acceptance of a letter of notification from the Energy Commission of Sabah for the development of the 187.5MW Ulu Padas hydro-electric project.

UPPSB is owned by UPP Holdings Sdn Bhd, a JV company in which Gamuda holds 45% with venture partners Sabah Energy Corp Sdn Bhd, 40%, and Kerjaya Kagum Hitech JV Sdn Bhd the remaining 15%.

In a filing with Bursa Malaysia, Gamuda noted the power project involved the construction of a dam in the Tenom and Sipitang districts of Sabah and will deliver an average of 1,052 gigawatt hours or GWh of clean energy per annum.

Construction work is slated to start next year with a scheduled commercial operations date (SCOD) set for the end of 2030.

Once commissioned, the project is expected to generate revenue exceeding RM400mil per annum, Gamuda stated.

Major construction work will start after UPP signs a 40-year power purchase agreement with Sabah Electricity Sdn Bhd, the offtaker for the power generated.

Gamuda added UPPSB is also required to propose and implement a floating solar solution integrated with the project, which is to achieve SCOD before end-December 2031.

“The project will contribute to Sabah’s electricity generation, increasing the current dependable capacity by 15% and doubling the renewable energy (RE) mix upon completion,” the filing noted.

Sabah’s dependable capacity of electricity stood at 1,180MW as of 2021, of which less than 105MW was from RE sources.

The project will be funded by internally generated funds and borrowings with a minimum debt-to-equity ratio of 80:20. Gamuda expects the project to provide recurring income post-commissioning.

“The project is also in line with Gamuda’s long-term environmental, social and governance strategy and commitment,” it stated.