Saturday, October 8

Sarawak Cable likely beneficiary from RM4 billion Baram Dam

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KUCHING: Sarawak Cable Bhd is slated to gain from the government’s plan to proceed with the construction of the Baram Dam.

Over the weekend, it was reported that the Sarawak state government will proceed with the construction of the RM4 billion Baram dam with Chief Minister Tan Sri Adenan Satem saying he had secured the support of majority of the community leaders in Baram to proceed with the project.

AmResearch Sdn Bhd (AmResearch) said the news comes hot on the heels of the state’s approval for the construction of the 1,285MW Baleh Dam.

Recall that last month, the Baleh Dam received the approval for the dam’s social and environmental impact assessment (SEIA) from the authorities.

The construction is slated to begin next year with completion expected by 2024 while Baram is expected to commence as soon as possible.

“Given Sarawak Cable’s fortified position as the leading integrated transmission line player in the state, we believe the company stands a good chance to secure jobs from the planting-up of the two dams,” it said in a report on the group yesterday.

“The two dams are part of the state’s plan to ramp up generating capacity to 7,000MW by 2025.”

When completed, the Baram Dam will generate 1,000MW of electricity. The dam is located 200km inland from Miri.

The approvals for the two dams are positive for Sarawak Cable, AmResearch affirmed, as it ensures continued job flow for the long-run.

Recall that Sarawak Energy Bhd (SEB) plans to construct a 500kV/275kV substation in Kanowit and a 500kV double-circuit line to connect Baleh Dam to the state’s power grid.

While cable supply tenders for the two dams will come later, some near-term prospects for Sarawak Cable include TNB’s tenders for cable supply for distribution lines amounting to circa RM1.2 billion; underground cables for 132kV lines in Petra Jaya; and TNB’s 500kV overhead transmission lines.

“Sarawak Cable’s 1QFY15 results are scheduled for release on May 26. We expect a stronger quarter sequentially, although there could be some impact from forex losses.”