Sarawak Energy And China-Sarawak JV Sign Contract For Baleh HEP

Kuching, 2nd August, 2017, Wednesday: Sarawak Energy Berhad’s subsidiary SEB Power today signed with China Gezhouba Group Company Limited and Untang Jaya Sdn Bhd Joint Venture the contract for the main civil works of the Baleh Hydroelectric Plant.

Sarawak Energy Group Chief Executive Officer Encik Sharbini Suhaili and Executive Vice President Mr. James Ung Sing Kwong signed on behalf of SEB Power Sdn Bhd while China Gezhouba Group Company Limited was represented by its Malaysia representatives Mr Xu Zhongguo and Mr Huang Mingxing.  Untang Jaya Sdn Bhd was represented by its director Mr Micheal Anak Jawa and managing director Pn Rheineld @ Minor Anak Panyau.

The occasion was witnessed by Sarawak's Deputy Chief Minister Tan Sri Datuk Amar Dr James Jemut Masing, Minister for Infrastructure Development and Transportation and state assemblyman for Baleh.

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 welcoming speech, Sarawak Energy’s chairman Datuk Amar Abdul Hamed Sepawi 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 best practices. This is to ensure that we work with the best in class contractors to deliver high quality projects that meet our requirements,” Datuk Amar Abdul Hamed said.

“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 line with Sarawak Energy’s aim to support the State’s initiatives to maximize local and Bumiputra content in our procurement and contracts,” Datuk Amar Abdul Hamed added.

Describing the project as another big generation infrastructure project after Murum HEP, Datuk Amar Abdul Hamed also called on everyone involved in the project to uphold safety at all times, in line with Sarawak Energy’s aspiration of achieving Health, Safety and Environment Excellence target.

Located on 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 the project is complete. The project is expected to be fully commissioned in 2025 and it will provide the additional renewable energy required to power Sarawak’s vision of becoming a developed state by 2030.

As a member of the International Hydropower Association (IHA), Sarawak Energy 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 marks China Gezhouba Group Company Limited’s entry into Malaysia’s construction industry. An established hydropower specialist with more than 40 years of experience, China Gezhouba Group Company Limited 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 comprises 30% of the JV, 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% of the contract value. This includes local communities, Bumiputera companies, Sarawak registered companies and Malaysia registered companies.

The construction of the dam will also 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.

Sarawak Energy had been actively preparing the local youth to participate in the various activities brought about by the construction of the HEP both providing them with skill training. Collaborating with local institutions, Sarawak Energy hoped to train 500 youth to obtain certification in various technical skill trainings for better employment opportunities. So far more than 80 youth had enrolled for the training programmes.

Exchange of contract documents between Sarawak Energy Group CEO, Sharbini Suhaili and Xu Zhongguo CGGC Malaysia representative.

(From left) Executive Vice President SEB Power James Ung Sing Kwong, Sarawak Energy Group CEO Sharbini Suhaili, CGGC Malaysia representatives Xu Zhongguo and Huang Mingxing and Untang Jaya Sdn Bhd representatives Mr Micheal anak Jawa and Puan Rheineld @ Minor anak Panyau at the signing ceremony.