Malakoff still keen to bid for solar projects

KUALA LUMPUR: Malakoff Corp Bhd is undeterred by its failure to secure approval for a large-scale solar photovoltaic plant in Tanjung Malim last month and is determined to bid for the next round of solar project.
Group managing director Datuk Wira Azhar Abdul Hamid said it wants to participate in solar ventures as much as possible and is currently working on the next round of bid for other solar projects.
“We’re disappointed that we missed out on the Tanjung Malim opportunity but we’re not giving up.
We’re also going in for the next round of bidding and we hope to get something out of it,” he told a press conference after its AGM yesterday.
The Energy Commission (ST) recently revoked its approval for Malakoff for the construction of a 50MW large-scale solar photovoltaic plant in Tanjung Malim following a change in the proposed location.
The project was supposed to be developed by Malakoff together with DRB-Hicom Bhd on a 51:49 basis. However, DRB-Hicom withdrew itself from the project as it was unable to reach mutual agreement on certain terms and conditions with Malakoff.
Azhar explained that DRB-Hicom is caught up with the uncertainties of Proton Holdings Bhd and were unable to commit on the land that was identified for the solar project, which eventually forced DRB-Hicom to pull out.
“We gave an alternative site in Kedah but it was not accepted by ST. We appealed but it was also not accepted, so never mind, we move on and look for new opportunities in the near future.”
He said one of the bids that Malakoff is preparing is in Kedah, but noted that it is looking at other sites as well.
“We’re not sure what’s going to happen as far as the Proton restructuring is concerned. It’s beyond our control so we try not to factor that (Tanjung Malim plant) in.
If it’s available, we’ll certainly look at it, but it has got to be a firm commitment because we don’t want to be caught twice on this one (Tanjung Malim plant),” said Azhar.
It is understood that the government is no longer taking bids for plants above 30MW. Solar powered generation is being explored in anticipation of the government’s target to achieve a cumulative solar capacity of 1,000MW by 2020.
“It’s getting smaller, but we will participate,” said Azhar.
Malakoff has an effective capacity of 7,036MW as at end 2016 and the plan moving forward is to look at over 10 opportunities to expand the group’s effective power generation to 10,000MW by 2020. 
Azhar said its focus is skewed towards brownfield investments as opposed to greenfield, as well as the international market.
“We want to go where we’re already at (overseas), the Middle East, developed markets like Australia and we don’t mind Europe, but we want to go in with partners who can add value to our existence in these investment opportunities,” he said.
It plans to grow revenue from its overseas operations, of which its associates contribute 4% to its revenue and 25% to its profit.
Azhar added that the group is optimistic on making better profits this year, focusing on internal efficiency and external contribution.