Mammoth RM1bil undertaking


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  • Saturday, 31 Aug 2013

KUCHING: The 500kV transmission backbone project, which is expected to strengthen electricity supply in the state, is ready to commence now that Sarawak Energy Bhd has selected the contractors for the RM1.2bil deal.

The project, divided into six contract packages, had been awarded to a combination of qualified international and local contractors with strong balance-sheet and relevant expertise following a stringent tender process, the company said in a statement yesterday.

In this respect, the project extending some 500km from Similajau in Bintulu to Tondong near Kuching, is expected to commence this October and is scheduled for completion in stages from December 2015 to June 2016.

“The award of the six packages are in line with the key objective of the procurement process which is to achieve the best possible value for the state and maximise the participation of Sarawakian and Malaysian businesses.

“Based on the information submitted by the successful tenderers, Sarawak Energy is pleased to note a more than 60 local companies, employing an estimated 30,000 local workers, will be involved in the awarded contracts. The local participation across the six packages is well above 50%,” the company said.

The project will support the future development of Sarawak Energy’s Generating System and provide a strong security of supply to the fast-expanding Sarawak Corridor of Renewable Energy (SCORE) customers.

SEB pointed out that the contracts were awarded to the lowest compliant tenderers namely:

·Toshiba Transmission and Distribution System Asia Sdn Bhd, JV Xian Electric Engineering Company Ltd for the Similajau to Mapai 500kV transmission line and Mapai to Oya 275kV transmission line contract packages;

·Sinohydro Corporation (M) Sdn Bhd, JV Trenergy Infrastructure Sdn Bhd (Mapai to Lachau 500kV transmission line, Lachau to Tondong 500kV transmission line);

·KEC International Ltd (Mambong and Entinggan 275kV substation extension), and;

·Pestech Sdn Bhd (Mapai 275/33kV substation project).

Sarawak Energy chief executive officer Torstein Dale Sjotveit said the board had decided that the companies were the best evaluated tenders and that the successful bidders had demonstrated their capabilities and experience and would ensure that SEB gets the best quality at the best price.

“Our project execution and procurement team has been very diligent in carrying out a competitive and stringent tender process in accordance with industry best practices to ensure that we secure the best possible value for the state.

“We are also particularly happy with the substantial local content in these packages, as Sarawak Energy is determined to maximise the participation of qualified and able Sarawakian and Malaysian businesses in our tenders, consistent with the state government’s objective to support the development and capability of local industries.

“The massive scale of the project means that it is not prudent to award this as one large contract to a single bidder. Instead, we intend to mitigate the risk in project execution by engaging multiple contractors, so that we have several big firms working at the same time, to complete the project as soon as possible,” he said.

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