Bina Puri Holdings Bhd, via its wholly-owned subsidiary BP Energy Sdn Bhd, has signed a memorandum of understanding (MoU) with Warisan Harta Sabah Sdn Bhd to collaborate on the development of two mini hydropower sites at Sg Tuaran, Tuaran and Sg Wario, Kota Belud, Sabah which have expected the capacity of 5MW and 3.5MW respectively.
Warisan Harta Sabah is strategic investment arm of the State Government of Sabah and has been granted consent in principle by the State Economic Planning Unit to develop mini hydropower projects at few locations in the State of Sabah.
The Hydropower projects were initiated by the Government since 2009 to meet the growing demand and reducing the dependency on fossil fuel.
The small-scale hydropower project has classified as Run-Of-River schemes up to 30 Megawatts installed capacity and also contributing to the electricity supply especially in rural areas.
In Sabah itself, the demand for electricity is forecasted to grow at a rate of 5 percent (medium term) in the year 2019-2024, after the short-term forecast of 6.1 percent in 2015-2018.
By the year 2035, the demand for electricity in Sabah is forecasted at 1,238 MW daily usage.
"Moving forward, we are indeed very positive and planning to add more mini hydro powers onto our power portfolio following the successful listing of our power subsidiary in Indonesia Stock Exchange (IDX) on June 2017.
"With this collaboration, it will not only bring great opportunities but it also serves as a platform for Bina Puri to venture into the development of hydropower in Sabah," said Bina Puri Group executive director Datuk Matthew Tee Kai Woon.
Bina Puri Group, which is primarily involved in construction activities has completed many landmarks and iconic projects in Borneo.
Recently completed was the Pusat Pentadbiran Negeri Sabah (PPNS) in Kota Kinabalu, Sabah.
Bina Puri also completed the KK Sulaman Coastal Road, Wisma Innoprise, Jesselton Condominium, Institut Latihan Perindustrian Sabah, Post Graduate Centre in University Malaysia Sabah and others.
"While construction remains the biggest top-line contributor for Bina Puri in FY2017, we believe the contribution from other business divisions especially Power Supply will increase in FY2018.
“Prospects will be better for the company moving forward and with our combined strength and expertise, we are devoted to taking this journey to the next level to enhance our shareholders' value," added Tee.
The MoU is valid for 6 months from the date it has been signed on.
