PETALING JAYA: Gamuda Bhd
says 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 its 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 Corp Sdn Bhd with a 40% stake and Kerjaya Kagum Hitech JV Sdn Bhd with 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 added.
Gamuda said the revised notification expands the project to include a 150 megawatt (MW) floating solar plant with an annual energy yield of 300 gigawatt hours (GWh), in addition to the existing 187.5 MW hydroelectric plant with an annual energy yield of 1,052 GWh.
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 MW 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,” the group said.
The group further pointed out that the 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 to 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.
The group’s earnings grew by 5% year-on-year (y-o-y) to RM229.5mil in the second quarter ended Jan 31, 2026, helped by contributions from its domestic construction projects. Revenue in the quarter also grew 10% y-o-y to RM4.3bil on the back of stronger contributions from its domestic construction projects and the successful implementation of quick-turnaround projects in Vietnam.
