KUALA LUMPUR – Gamuda Bhd has inked a joint venture (JV) agreement with Sabah Energy Corporation Sdn Bhd and Kerjaya Kagum Hitech JV Sdn Bhd to form a JV company, UPP Holdings Sdn Bhd.
The purpose of the proposed JV would be to undertake a private finance initiative to develop the Upper Padas Hydroelectric Power Plant in Tenom, Sabah, with a total estimated project cost of RM4 billion, Gamuda said in a filing with Bursa Malaysia today.
The group said it would take up a 45% stake in the JV company, while Sabah Energy would hold 40% and Kerjaya Kagum the remaining 15%.
It said that the hydroelectric dam project would be delivered via the JV company’s wholly owned unit, Upper Padas Power Sdn Bhd, which will act as the project developer.
“The project is estimated to have a construction period of five years and an initial operating period of 40 years.
“As part of the proposed JV, a power purchase agreement (PPA) is to be finalised and entered into between the project developer and the offtaker, Sabah Electricity Sdn Bhd,” it said.
The group said that upon completion, the project would provide an additional generation capacity of 187.5 MW for Sabah, delivering up to 1,052 gigawatt-hours of clean energy per annum.
Gamuda would make due announcements on the tariff details and developments on the PPA once appropriate approval is obtained, it said, adding that the project developer would execute the PPA by the first half of 2024.
It added that the proposed JV would be funded via a combination of internally generated funds and borrowings with a minimum debt-to-equity ratio of 80:20.
“Barring unforeseen circumstances, the project is expected to start construction in 2024, with commercial operation to start in 2029,” said Gamuda. – Bernama, October 30, 2023
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