Analysis: Gamuda a strong contender for Sarawak Energy’s dam RFP

KUCHING (Feb 19): Gamuda Bhd (Gamuda) is emerging as a key contender in Sarawak Energy Bhd’s (Sarawak Energy) request for proposal (RFP) to develop five hydroelectric dams in the state.

According to a report by The Edge on February 16, the RFP has attracted interest from several companies, including Gamuda, Press Metal Aluminium Holdings Bhd, and firms from Japan, China, and South Korea.

RHB Investment Bank Bhd (RHBIB) in a company update yesterday said Gamuda’s participation is not surprising given its exposure to Sarawak infrastructure landscape.

The group is involved in major projects such as the Pan Borneo Highway, the Batang Lupar Bridge and the Northern Coastal Highway. It is also undertaking dam-related works, including the Sabah Ulu Padas Hydroelectric project.

The five dams under the cascading power sources (CPS) initiative are located in Tutoh, Belaga, Danum, Balui and Gaat basins, in the central and northern parts of the state and near the Kalimantan border.

RHBIB noted that the feasibility study is expected to begin in March, while the final investment decision and construction is targeted start in first quarter of 2028 before commencement in 2034 or 2035.

“While construction is set to begin only two years from now, we expect such projects to retain Gamuda’s footprint of local projects, which are of higher margins than that of its overseas jobs,” it said.

Based on benchmarking against cascading dam developments in Europe and Vietnam, the estimated cost ranges between RM8 million and RM13 million per megawatt (MW).

RHBIB said the five identified basins have a combined potential capacity of between 1,550MW and 1,970MW, implying a total investment value of approximately RM12.4 billion to RM25.6 billion, based on its estimates.

RHBIB noted that Sarawak’s current generation capacity stands at 5.9GW and is on track to reach 10GW by 2030.

By 2035, total generation capacity is projected to rise to 15GW, with at least 60 per cent derived from renewable energy sources.

Hydropower accounted for 3.6GW, or 60.4 per cent, of the state’s generation capacity in 2025. This is expected to increase to 5.8GW by 2035.

To support this target, Sarawak Energy has identified 12 river basins with CPS potential totalling about 3GW in capacity, with the current RFP focusing on five of them.

RHBIB said it continues to favour Gamuda, citing its diversified renewable energy portfolio spanning solar, onshore wind, hydroelectric dams and potential pumped hydro projects, which could help cushion any slowdown in transportation infrastructure works.