KUCHING: Sarawak Energy Bhd, together with consortium partners China Gezhouba Group Ltd and Untang Jaya Sdn Bhd, will undertake a RM3 billion civil work package of the Baleh Hydroelectric dam project.
Sarawak Energy’s subsidiary SEB Power will work with China Gezhouba and Untang Jaya for the main civil works.
Overall, the Baleh Hyroelectric dam is estimated to cost RM8 billion and is expected to be fully commissioned by 2025.
Located in the Baleh River about 95km upstream from the confluence with the Rejang River in Kapit, the dam will generate 1,285 megawatts of renewable energy once completed.
Sarawak Energy chairman Datuk Abdul Hamed Sepawi said the joint venture is an avenue for sharing of expertise between China and the local contractors.
"This is in line with our aim to support the state's initiative to maximise local and Bumiputera content in our procurement and contracts," he said.
The construction of dam, he said, will also create employment opportunities especially for the locals and at its peak some 3,500 workers are expected to be at the project.
Sarawak Energy chief executive officer Sharbini Suhaili said the contract was the fourth package of the dam to be awarded.
"We have a total of eight packages (for the Baleh dam) and we had awarded three, included road projects, explosive magazine and operator's village," he told the reporters after the signing ceremony.
The remaining four packages are diversion tunnels, transmission line, mechanical works and clearing of biomass.
"The next package to be awarded would be the tunnel works, however, we are still finalising some negotiations," he added.
On project funding, Suhaili said the group has RM5.5 billion from its Sukuk Musyarakah Program.
"Initially, we have RM15 billion and we have redeemed RM9.5 billion. We also have the internally-generated fund," he added.