Malaysian infrastructure giant Gamuda will establish a joint venture to develop a 187.5 MW hydroelectric power plant in Tenom through a private finance initiative, with the total project cost estimated to be around RM 4 billion, including interest during construction.
Gamuda said the project will be delivered via the joint venture’s wholly-owned unit Upper Padas Power, and is estimated to have a construction period of five years and an initial operating period of 40 years.
An artist impression of the Upper Padas Hydroelectric Dam. (Photo: Gamuda)
As part of the proposed deal, a power purchase agreement is to be finalized and entered into between the project developer and the offtaker, Sabah Electricity. The group will hold a 45% stake in the joint company, while Sabah Energy and Kerjaya Kagum Hitech JV will own the remaining 40% and 15% respectively.
On the rationale of the joint venture, Gamuda said the project is in line with its long-term environmental, social and governance (ESG) commitment and strategy.
“Sabah currently only has less than 12% reserve margin of electricity supply and coupled with increasing demand by the industrial sector for green energy, there is a need to further increase electricity generation to ensure a stable base load. As published in the Sabah Energy Roadmap and Master Plan 2040, the state now has a dependable capacity for electricity of about 1,180 MW as of 2021.
This project, upon completion, will provide additional generation capacity of 187.5 MW for the state, delivering up to 1,052 GWh of clean energy annually,” said Gamuda. The project is expected to start construction in 2024 with commercial operation to begin in 2029.
Gamuda, cofounded by Malaysian tycoon Lin Yun Ling in 1976, has also been expanding overseas and has implemented projects across Singapore, Taiwan, Australia, the U.K. and Vietnam. It recently won the 3.45 billion ringgit contract to build the yellow line of the Kaohsiung Mass Rapid Transit in Taiwan.