Sarawak Energy, China Gezhouba Group sign hydroelectric plant deal
KUCHING: Sarawak Energy Bhd (SEB)'s subsidiary SEB Power yesterday signed with China Gezhouba Group Company Limited and Untang Jaya Sdn Bhd Joint Venture a contract worth about RM3 billion for the main civil works of the Baleh Hydroelectric Plant.
SEB group chief executive officer Sharbini Suhaili and executive vice president James Ung Sing Kwong signed on behalf of SEB Power Sdn Bhd while China Gezhouba Group Company Limited was represented by its Malaysia representatives Xu Zhongguo and Huang Mingxing. Untang Jaya Sdn Bhd was represented by its director Michael Jawa and managing director Rheineld @ Minor Panyau.
The ceremony was witnessed by Deputy Chief Minister Tan Sri Datuk Amar Dr James Jemut Masing, who is also Baleh assemblyman, and SEB chairman Datuk Amar Abdul Hamed Sepawi.
Consul-General of the People's Republic of China in Kuching Fu Ji Jun and China Gezhouba Group Company Limited vice president Chen Xiaohua were present during the contract signing ceremony.
With the signing of the contract, China Gezhouba Group Company Limited and Untang Jaya Sdn Bhd Joint Venture will start with the design works soon. The contract also includes the construction of the dam, intake structure, spillway and penstocks. The construction of the dam is scheduled to begin in October next year.
In his speech, Abdul Hamed said the construction of Baleh HEP is in line with the international and industry best practices.
"We have a very structured Procurement Policies and Procedures (PPP) which is in line with international and industry practices. This is to ensure that we work with the best in class contractors to deliver high quality projects that meet our requirements.
"The signing of this contract is an avenue for sharing of expertise between China Gezhouba Group Company Limited and our own local contractor Untang Jaya Sdn Bhd. At the same time, it is also in line with Sarawak Energy's aim to support the state's initiatives to maximise local and Bumiputera content in our procurement and contracts."
Describing the project as another significant generation infrastructure project after Murum HEP, Abdul Hamed also called on everyone involved in the project to uphold safety at all times, in line with SEB's aspiration of achieving the Health, Safety and Environment Excellence target.
Located on the Baleh River about 95 kilometres upstream from the confluence with the Rejang River in Kapit, the dam will generate 1,285 megawatts of renewable energy once the project is completed.
The project is expected to be fully commissioned in 2025 and it will provide additional renewable energy required to power Sarawak's vision of becoming a developed state by 2030.
SEB said as a member of the International Hydropower Association (IHA), it is committed to undertake the project in accordance with the guidelines set out by the Hydropower Sustainability Assessment Protocol.
The construction of the Baleh HEP also marks China Gezhouba Group Company Limited's entry into Malaysia's construction industry.
An established hydropower specialist with more than 40 years of experience, the company had constructed more than 100 hydropower projects. Its main designer, Yellow River Engineering Consulting Co Limited, is an established design consultant with a portfolio of more than 30 large hydropower projects on the Yellow River alone.
Untang Jaya Sdn Bhd, which holds 30 per cent of the joint venture, is a Sarawak-registered Class A contractor from the Baleh/Kapit area with extensive background in construction.
China Gezhouba Group Company Limited and Untang Jaya Sdn Bhd Joint Venture have indicated that they are looking at procuring locally sourced content of up to 45 per cent of the contract value. This includes local communities, Bumiputera companies, Sarawak registered companies and Malaysia registered companies.
The construction of the dam will provide employment opportunities especially for the locals, and at its peak some 3,500 workers are expected to be at the project site. Apart from employment, other opportunities that the locals could tap into include business opportunities and local content like capability development.
SEB had been actively preparing the local youth to participate in the various activities brought about by the construction of the HEP, providing them with skills training.
Collaborating with local institutions, SEB hopes to train 500 youth to obtain certification in various technical skills for better employment opportunities. So far, more than 80 youth had enrolled for the training programmes.