KUALA LUMPUR (Oct 25): Gamuda Bhd (KL:GAMUDA) announced on Friday that its 75%-owned joint venture company has been appointed as the total development contractor for RM3.05 billion to build a hydroelectric plant in Sabah.
The contract, awarded by Upper Padas Power Sdn Bhd (UPPSB), involves the design and construction of a 187.5-megawatt Ulu Padas dam in Tenom. Gamuda holds an indirect interest of 45% in UPPSB through UPP Holdings Sdn Bhd.
Conlay Construction Sdn Bhd, a construction and property development company, will hold the remaining 25% stake in the joint venture, Gamuda said in an exchange filing, adding that detailed terms and conditions of the contract are currently being negotiated with UPPSB.
Work is expected to begin immediately with the scheduled commercial operation date to be on or before Dec 31, 2030, the group said.
Upon completion, the project is expected to deliver an average of 1,052 GWh of clean energy per annum, increasing Sabah's current dependable capacity by 15% and doubling the renewable energy mix. This will support the state’s aim to achieve 35% renewable energy share in its generation mix by 2035.
Gamuda said the contract is anticipated to contribute positively to the group's revenue and earnings for the financial year ending July 31, 2025 onwards, until the completion of the contract.
This is the second contract Gamuda has announced this week.
On Tuesday, Gamuda said the group and its joint venture partners, MiTAC Information Technology Corp and Dong Pi Co Limited, have been awarded a RM4.3 billion main design and build contract to deliver the Xizhi Donghu Mass Rapid Transit in Taiwan.
Last month, Gamuda secured a RM702 million construction contract to deliver the Boulder Creek Wind Farm in Queensland, Australia.
As at the end-July this year, the group’s construction orderbook stood at RM25 billion.
Gamuda's share price rose nine sen or 1.07% to close at RM8.50 on Friday, giving it a market capitalisation of RM23.98 billion. The counter has risen over 85% year-to-date, largely fuelled by optimism about the government's roll-out of major infrastructure projects.