Gamuda bags RM2.28bil contract for Australia renewable energy project


KUALA LUMPUR: Gamuda Bhd has secured an A$790mil (about RM2.28bil) engineering, procurement and construction (EPC) contract for the Mortlake Energy Hub (Stage 1) in Australia.

In a filing with Bursa Malaysia, Gamuda said its indirect wholly owned subsidiary Gamuda Engineering Pty Ltd entered into the contract with MEH SubCo Pty Ltd, as trustee for the MEH Project Trust, on Sept 28.

The project is a 300MW hybrid renewable energy facility comprising a 435MWp solar and 1,449MWh Battery Energy Storage System

(BESS) that will connect to the existing 500kV network via the Mortlake Terminal Station.

Under the contract, Gamuda Engineering will undertake the design, procurement, construction, installation, testing and commissioning of the facility.

The contract will run for about two years until January 2029.

Gamuda said a limited notice to proceed will be issued on Sept 29, allowing its Australian unit to begin project enabling works.

The notice to proceed is subject to MEH SubCo achieving financial close, which is targeted for the fourth quarter of 2026.

Separately, the parties expect to enter into an operation and maintenance (O&M) contract worth A$45mil, or about RM130mil, within one month of the announcement.

Both contract values are subject to foreign exchange adjustments at financial close.

Gamuda said the EPC contract is expected to contribute positively to the group’s revenue and earnings over the contract period.

The proposed O&M contract, if executed, is also expected to contribute positively to the group over its contract period.

Once operational, the Mortlake Energy Hub is expected to support the Australian state of Victoria’s renewable energy transition by combining large-scale solar generation with battery energy storage.

“During delivery, the project is expected to support employment, local businesses and suppliers, while environmental and community management measures will be implemented throughout construction. 

“A community benefits fund will be implemented during construction to deliver lasting local benefits.,” Gamuda said.

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