British engineering consultancy, KGAL, is to manage the feasibility and development of a series of small hydropower schemes in the Malaysian state of Sabah after winning an £18 million contract - its largest to date.
The contract was formally signed in Kota Kinabalu on the 10 November 2014 and commences immediately. The nine-year programme will help the State of Sabah Government (SSG) to meet their target to achieve "developed" status by 2020.
Working with SSG's Economic Planning Unit and developer Nova Beta Energy (NBE), developer Warisan Harta Sabah Sdn. Bhd. (WHSSB) - the investment arm of the State of Sabah Government (SSG) - has identified a number of run-of-river hydropower opportunities (all under 30MW) and feasibility studies are to be carried out on 17 sites with an estimated combined installed capacity of 432MW.
The proposal will adopt the compliance standards of the International Hydropower Association's (IHA) Sustainability Protocol and all development will follow the principles that the IHA has established as best practice. Consultations with local stakeholders are planned to discuss issues, address concerns and assess expectations in terms of infrastructure, environmental sensitivities and the social impact on local heritage and indigenous communities.
Environmentally sensitive development of these sites will cost around £540m (RM2.9bn). Funding will come from bonds complaint with Islamic finance principles and the bank has indicated that the funds are available.
Executive Director of Nova Beta Energy Sdn Bhd, Enis Arnaut, has appointed the water-to-wire services of KGAL to manage the project and help to develop this opportunity, after investing a considerable amount of time carrying out due diligence, with senior representatives of both NBESB and WHSSB visiting the UK, to look at KGAL's work and meet its clients.
“Nova Beta Energy will be dedicated to finding and delivering beneficial opportunities for the people of Sabah wherever we can find them," comments Arnaut. "We have worked hard to find partners who share our outlook for this programme and believe that we have done so with KGAL. We are now looking forward to engaging with the various stakeholders to find the best outcomes for everybody."
KGAL aims to ensure that development of the schemes includes substantial studies around environmental issues and concerns, liaising with bodies such as the Heart of Borneo. Subject to the outcome of these reviews feasibility studies will follow. As a result of the order, the company intends to maintain a presence in Malaysia, employing and training a team of local staff.
“We are delighted to have been chosen to assist with the project management of this unique programme of hydropower station construction. It is not every day that you have the chance to develop a complete hydro capability and, in doing so, improve people's lives," said Managing Director of KGAL, Ken Grubb. "Throughout negotiations, we have been impressed with the determination of the client organisations to find ways of delivering sustainable solutions that are in the best interests of the people of Sabah, their heritage and their environment.
“I know that the whole team at KGAL is looking forward to the hard work involved and wants to deliver the maximum legacy benefits. This is an enterprise that we can all be proud of."
Image: (L to R) KGAL MD Ken Grubb, Warisan Harta CEO Datuk Abu Baker Abas, and NBE CEO Enis Arnaut signing the Contract in Kota Kinabalu.
