Renewable energy generation and water concession assets across Malaysia and Indonesia — delivering long-term recurring revenue through power and water infrastructure.
The Utilities Division is envisaged by Gadang to be a sector with good potential for development and long-term growth. In 2005, Gadang, through Asian Utilities Pte Ltd (AUPL), acquired its first water concession in Sidoarjo, East Java, Indonesia.
To date, AUPL owns one mini-hydro power concession and three water concessions in Indonesia with a total water production of 1,050 litres per second. The division has since expanded into renewable energy, with solar PV and mini-hydro projects in Malaysia and Indonesia.
Moving forward, the division actively seeks business opportunities and expansion in water and power generation within the Asia region through partnerships and strategic engagement.
Gadang Utilities owns and operates renewable energy and water concession assets across Malaysia and Indonesia.
RUSB – Hotrend Joint Consortium, a joint venture between Regional Utilities Sdn Bhd (“RUSB”), a wholly-owned subsidiary of Gadang and Hotrend Corporation Sdn Bhd (“Hotrend”), has received the Letter of Notification of Acceptance of Offer from the Energy Commission of Sabah (EC Sabah) for the development of a 15.0 MWa.c. Large Scale Solar PV Plant in Tawau, Sabah (“the Project”).
The consortium has established a Special Purpose Company, Tenaga Aspirasi Sdn Bhd (“TASB”), to undertake the project. TASB will be responsible for the design, construction, testing, commissioning, ownership, operation and maintenance of the solar photovoltaic energy generating facility. The plant, with a capacity of 15.0 MWa.c., will be located in Tawau, Sabah and connected to the Sabah Electricity Sdn Bhd (“SESB”) medium voltage Distribution Network at PPU Kubota to generate and deliver solar photovoltaic energy to SESB.
Utilities Division subsidiary PT. Ikhwan Mega Power (PT IMP) achieved another significant milestone with the commencement of commercial operations for its second 4.5MW run-of-river hydro unit. The unit was successfully synchronised with the distribution grid of Perusahaan Listrik Negara (PT PLN), an Indonesian state-owned utility company, on 27 September 2023, following the official commercial operation date (COD) of the first unit on 7 July 2023.
The 9MW mini hydropower plant, located in Kecamatan Lintau Buo Utara, Kabupaten Tanah Datar, West Sumatera Province, is now generating a recurring revenue stream for the division under a 15-year concession period.
Utilities Division 70%-owned subsidiary Nusantara Suriamas Sdn Bhd (NSSB) has signed a power purchase agreement (PPA) with Sabah Electricity Sdn Bhd (SESB) for a large-scale solar power plant photovoltaic (LSSPV) in December 2021.
NSSB will design, construct and operate a solar photovoltaic energy generating facility with a capacity of 5.9 Megawatt alternating current (MWa.c.) in Tawau, for connection to SESB’s medium voltage distribution network at PPU Sri Indah.
The PPA governs the obligations of NSSB and SESB to sell and purchase the energy generated by the facility for a period of 21 years from the commercial operation date which is expected on 30 June 2024.
PT Taman Tirta Sidoarjo (“TTS”) was established in 1997 as one of the first privately owned water supply companies in Indonesia. TTS operates a 250 litres/second water supply concession in Kabupaten Sidoarjo, which is located immediately south of the city of Surabaya. Kabupaten Sidoarjo has a population of 2.3 million people and is the acknowledged industrial centre of East Java.
To date, TTS has accumulated more than twenty (20) years of valuable experience in the operations of a water supply concession in Indonesia. As demand for piped water continues to rise strongly in Sidoarjo, TTS will seek to work in cooperation with Perusahaan Daerah Air Minum (“PDAM”) Delta Tirta Sidoarjo, a state-owned utility company, to increase its scope of supply in Kabupaten Sidoarjo.
PT Hanarida Tirta Birawa (“HTB”) was established in 2003.
HTB operates a 600 litres/second water supply concession in Kabupaten Sidoarjo. HTB WTP is located adjacent to TTS WTP. The combined treated water production of HTB and TTS constitutes about 60% of the total treated water production and supply in Kabupaten Sidoarjo. Both TTS and HTB abstract raw water from Pelayaran Canal (“Kali Perlayaran”).
HTB had expanded its production capacity to 600 litres/second in October 2016. The expansion works included a new reservoir, booster station and pipelines to upgrade the water supply distribution networks for PDAM Delta Tirta Sidoarjo. The water supply concession of HTB is in its fifteen (15) years of operations.
PT Dewata Bangun Tirta (“DBT”) was established in 2007. DBT operates a 200 litres/second water supply concession in Kabupaten Gresik which located approximately 11km to the north of TTS and HTB WTP at Tawangsari, Sidoarjo. Kabupaten Gresik has a population of 1.2 million people and is one of the dense Industrial region in East Java. The water supply is governed by a Build, Operate and Transfer Agreement (“BOT”) signed in 2012 whereby DBT was given the rights to supply clean water to PDAM Gresik for a period of twenty five (25) years from 2013 up to year 2038.
Under the BOT Agreement, DBT had invested and constructed a 200 litres/second WTP, which included a 5.5km transmission main to the designated PDAM reservoir and booster station. DBT abstracts raw water directly from Brantas River (“Kali Brantas”) which is an upstream of Surabaya River. To date, DBT has been in operation for a period of six (6) years. DBT plans to invest sustainably to increase water supply and coverage in Gresik region. In association of the above, DBT water supply will be expanded from its current 200 litres/second to 300 litres/second as per Water Concession Agreement. The discussion is in progress.
PT Taman Tirta Sidoarjo
PT Hanarida Tirta Birawa
PT Dewata Bangun Tirta