Sarawak Energy Inks Deal With Toshiba TTDA & China Xian Electric For 500kV Transmission Backbone

Kuching, 2 Dec 2013: Sarawak Energy Berhad today inked an agreement with globally renowned power transmission experts, Toshiba Transmission & Distribution System Asia Sdn Bhd (TTDA) and China Xian Electric Engineering Co. Ltd (a member of XD Group), which is one of China’s leading and biggest power transmission and distribution engineering contractors. This agreement will set the wheels in motion to deliver the much anticipated 500kv transmission backbone.

The 500kV Project will provide a strong high voltage transmission Backbone, extending over 500 kilometers from Similajau in Bintulu to Tondong in Kuching. The 500kV Transmission Backbone project will support the future development of SEB’s Generating System and provide a strong secure supply to the fast-expanding SCORE customers.  In turn, more transmission capacity is required to strengthen the current electricity supply into Kuching and southwestern Sarawak.

Fuelled by the solid economic year-on-year performance of Sarawak, combined with the exceptional performance of SCORE, development is at an all-time high. The knock on effect is an increased demand for energy which is projected to reach 8,000MW by 2030, a big increase from the current 1,200MW currently demanded. It is estimated that 2,000MW will be required for residential, commercial and retail while the remaining 6,000MW will be channeled into SCORE which has already brought in over US$13bil in investments that are helping drive statewide development.

The project and contract Package A & Package 2 for the 500kV Transmission Backbone is worth RM432 million and was awarded following a lengthy and stringent tender process based on international best practices. Sarawak Energy was represented by Chief Executive Officer Datuk Torstein Dale Sjotveit and Chief of Corporate Services Puan Aisah Eden, while Toshiba TTDA were represented by Executive Chairman Hiroyuki Mogi and Managing Director Yong Ah Huat while XD Group was represented by Vice President Yang Bao Lin and Deputy General Manager Liang Jin Chao. The signing ceremony took place at Menara Sarawak Energy. 

The award for the two packages are in line with the twin objectives of the procurement process; achieve the best possible value for the State and maximize the participation of Sarawakian and Malaysian businesses. 

At the document submission stage, which was open to all parties, Sarawakian, Peninsular Malaysia and Internationals, all tenders were evaluated based on their full compliance with tender submission requirements. The shortlisted entities were subsequently evaluated based on technical, competency and commercial aspects to identify the best value for the project.

Sarawak Energy’s ‘Guiding Principles’ when selecting and evaluating vendors upholds the highest levels of integrity and ethics, guided by the following principles; best value for money, open and effective completion, impartiality and transparency of process and enhanced opportunity for local content. 

Sarawak Energy Berhad’s Chief Executive Officer, Datuk Torstein Dale Sjotveit in congratulating Toshiba TTDA and Xian Electric Engineering on their success said, "The JV presented the best case in assuring us that maximum value to the State would be achieved while ensuring best quality in delivery and execution.  Our procurement and project execution teams have meticulously evaluated the bidders and following a stringent tender and evaluation process, we believe the best team has won. ” said Torstein.

Speaking about the win, Executive Chairman of Toshiba TTDA, Hiroyuki Mogi said, “It was a very strict and thorough tender process and the awarding of the project to us absolutely verifies that we have the people, the quality, the expertise, the experience, the capability and the financial stability to execute such an important infrastructure task.” Xian Electric Engineering was committed to delivering what they have been asked to execute.  Yang Bao Lin, Vice President of XD Group said, “As the largest power transmission and distribution engineering firm in China, we are 100% behind the objectives of the 500 kV backbone project.  We are committed to delivering the absolute best in quality and service to the people of Sarawak.  We also look forward to further cooperation with Sarawak Energy.”

Group Photo with Signatories from Toshiba TTDA and Xian Electric Engineering Co, Ltd

Sarawak Energy CEO Datuk Torstein Dale Sjotveit exchanging documents with XD Group Vice President Yang Bao Lin.  To the left of Datuk Torstein is Sarawak Energy Chief of Corporate Services, Puan Aisah Eden