KUALA LUMPUR: Gamuda Bhd
said Upper Padas Power Sdn Bhd (UPPSB) has secured the RM5.98bil contruction contract for Phase 1 of the Ulu Padas water supply scheme (SBAUP) from the Sabah State Water Department (JANS) today.
Gamuda has an indirect interest of 45% in UPPSB, which is wholly-owned by UPP Holdings Sdn Bhd, its joint venture with Sabah Energy Corp Sdn Bhd and Kerjaya Kagum Hitech JV Sdn Bhd.
SBAUP is a holistic water supply scheme for Sabah’s west coast with an ultimate design capacity of 950 MLD to be developed in phases.
Phase 1 of the project, which entails the construction of a 350 MLD water treatment plant in Beaufort district and 200km of water pipelines in the west coast of Sabah, is targeted for completion in 2029.
The implementation timeline and commercial terms for the remaining 600 MLD shall be determined at a later time.
The project leverages the 187.5MW Ulu Padas Hydroelectric project (UPHEP), which primarily supplies renewable energy and regulates about 6,000 MLD of raw water through Sungai Padas for the SBAUP, thus reducing system costs as a separate dam is not required to retain water.
Given that UPHEP works are are currently underway, the SBAUP can be fast-tracked as a "bolt-on project" to UPHEP and can commence immediately, said Gamuda.
According to the statement, the SBAUP was initiated to resolve a long-standing problem of water shortages in the main districts of Sabah, including Kota Kinabalu.
Gamuda said the state has narrow reserve margins, which have been amplified by legacy issues around non-revenue water.
"This is further heightened by the rising domestic needs for treated water and the anticipated demand from upcoming industrial developments such as the Sipitang Oil & Gas Industrial Park," it said.
