Powering up with 5 new dams

By Sharen Kaur
Published in NST on February 25, 2014

INCREASING CAPACITY: SEB will invest up to RM10b on hydroelectric projects in central and northern Sarawak next year

SARAWAK Energy Bhd (SEB) plans to build five hydrolectric dams with a total 3,110-megawatt (MW) capacity and invest up to RM10 billion next year.

The state-owned entity has called for companies to submit  prequalification applications to develop the dams.

The dams being planned are Balleh (1,200MW) and Pelagus (410MW) in the upper Rejang River basin in central Sarawak, where the Bakun and Murum dams are sited; and Baram (1,200MW), Limbang 1 & 2 (200MW) and Lawas (100MW) in northern Sarawak.

Sources said the company has not finalised which projects will be implemented first.  However, they said there is a high chance that the Baram and Balleh hydroelectric dams will be built  first.

 The two projects alone will cost RM7 billion to RM8 billion, said a source.

"SEB is calling for companies to submit prequalification applications so that when it calls for tenders, it will have a list of qualified contractors," he said.

The source said tenders may be called later this year but that would depend on many factors, including  economic, financial, weather and demand for power.

The pre-qualification applications are for main civil works (dam and spillway) and electrical and mechanical works (powerhouse civil works). Advertisements were placed last week in several newspapers to attract local and foreign participation.

Foreign players have to form a consortium or joint venture with locally-incorporated companies to qualify for the process.

The  applications close on April 14.

SEB wants companies that have either completed similar packages for at least one major hydroelectric project worth more than RM1 billion or are undertaking one that is worth more than RM2 billion.

SEB, which was delisted from Bursa Malaysia in 2010 after it was taken private by the Sarawak government, aims to increase its installed hydro-power capacity to 6,000MW by next year.

The company's only hydroelectric project is Murum dam, which is being constructed by Chinese dam builder Sinohydro and supervised by Three Gorges Corp.