KUALA LUMPUR: Gamuda Bhd
via a joint venture firm has accepted a letter of notification to undertake the development of the 187.5MW Ulu Padas Hydroelectric project from the Energy Commission of Sabah.
In a statement, Gamuda said the project will be developed by Upper Padas Power Sdn Bhd, a wholly-owned subsidiary of UPP Holdings Sdn Bhd, which is in turn a joint venture between Gamuda, Sabah Energy Corp Sdn Bhd and Kerjaya Kagum Hitech JV Sdn Bhd.
Gamuda has a 45% equity interest in the JV company, while Sabah Energy owns 40% and Kerjaya Kagum Hitech, the remaining 15%.
According to the statement, the project involves the construction of a dam located in the Tenom and Sipitang districts of Sabah and will deliver an average of 1,052GWh of clean energy per annum.
Once completed, the project is expected to generate revenue exceeding RM400mil per annum.
The project is expected to start major construction in 2025 after UPP has signed a 40-year power purchase agreement with Sabah Electricity Sdn Bhd, the offtaker.
The construction of the project is expected to be completed in six years with the scheduled commercial operation date (SCOD) on or before Dec 31, 2030.
As a condition of the letter of notification, UPP is to propose and implement a floating solar solution integrated with the project, which is to achieve SCOD before December 2031.
Gamuda said the project will increase Sabah's current dependable capacity by approximately 15% and double the renewable energy mix upon completion.
"The project is also in line with Gamuda’s long-term ESG strategy and commitment," it said.
