Gamuda unit accepts revised nod for Sabah hydro-solar hybrid project


KUALA LUMPUR: Gamuda Bhd said its 45%-owned Upper Padas Power Sdn Bhd (UPPSB) has accepted a revised letter of notification from the Energy Commission of Sabah for the development of the Ulu Padas Hydroelectric Project.

In a filing with Bursa Malaysia, the group said UPPSB signed acceptance of the revised letter for the project, which will now be developed as an integrated hybrid hydroelectric and floating solar plant.

The remaining shareholders of UPPSB are Sabah Energy Corporation Sdn Bhd, with a 40% stake and Kerjaya Kagum Hitech JV Sdn Bhd holding 15%.

“The details of the project have been expanded to reflect integrated hybrid hydroelectric and floating solar plant (integrated project) capacities and energy yields,” it said.

Gamuda said the revised notification expands the project to include a 150MWac floating solar plant with an annual energy yield of 300GWh, in addition to the existing 187.5MW hydroelectric plant with an annual energy yield of 1,052GWh.

The group said the integrated project will have split concession tenures of 40 years for the hydroelectric plant and 25 years for the floating solar plant, and is expected to generate revenue exceeding RM450mil per annum upon completion.

“Sabah urgently requires additional dependable generation capacity. The integration of the 150 MWac floating solar component enables the Integrated Project to deliver critical renewable energy at an accelerated pace, ensuring sustainable rates for the State while expanding Gamuda’s green energy portfolio,” it said.

It added that acceptance of the revised letter allows UPPSB to proceed with key milestones, including the execution of the power purchase agreement by Dec 31, 2026 and securing financing.

The project will be funded through a mix of internally generated funds and borrowings, with a minimum debt-to-equity ratio of 80:20.

Gamuda said the project is expected to contribute positively to earnings during construction and provide recurring income after its scheduled commercial operation dates, set on or before Dec 31, 2030, for the hydro plant and Dec 31, 2031, for the floating solar facility.

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