Four firms clinch multi-million ringgit solar PV plant deals

PETALING JAYA: Four companies – Tenaga Nasional Bhd (TNB), Malakoff Corp Bhd, Mudajaya Group Bhd and Integrated Logistics Bhd (ILB) – have been awarded contracts for the development of large-scale solar photovoltaic plants (solar PV plants) in Malaysia by the Energy Commission.
TNB is to develop a 50MW solar photovoltaic plant in Mukim Tanjung Duabelas, Kuala Langat, Selangor, after a competitive bidding process conducted by the commission.
The letter of acceptance of offer requires TNB to satisfy certain obligations, including completion of negotiations and execution of project documents prior to the commission issuing the formal letter of award for the project, TNB said in a stock exchange filing.
Meanwhile, the consortium of Malakoff and DRB-Hicom Environmental Services Sdn Bhd (DHES) managed to secure the construction and development of a 50MW solar PV plant on 200 acres of land in Tanjung Malim, Perak.
The consortium participated in a competitive bidding exercise for the project and was selected as a shortlisted bidder.
“The official letter of award for the project will be issued subject to the consortium’s confirmation that it will fulfil the conditions, including registration to the Companies Commission of Malaysia; the finalisation of the terms of the agreements; and approval from relevant authorities for the development and operation of the project,” Malakoff said.
The project involves financing, design, supply, build, own, operate and maintenance of a 50MW solar PV plant on a build-own-operate basis with the expected commercial operation date on July 1, 2018 for a term of 21 years under the power purchase agreement.
The project is not expected to have any material impact on the earnings and net assets of the Malakoff group for the financial year ending Dec 31, 2016.
It noted that MMC Corp Bhd, being a major shareholder of Malakoff, is a unit connected to DRB-Hicom, the holding company of DHES.
Mudajaya’s wholly owned subsidiary Mudajaya Corp Bhd develop a solar PV plant of 49MW on a build-own-operate basis at Sungai Siput, Kuala Kangsar, Perak, for RM270 million. The award is expected to be finalised by February 2017.
The construction period for the project is 18 months from finalisation of the award.
The project is expected to contribute positively to the earnings of the Mudajaya group for the financial year ending 2018 onwards.
ILB’s indirect wholly-owned subsidiary IL Solar Sdn Bhd in turn will develop a plant of 10MW at Bandar Bukit Kayu Hitam, Kedah, which is subject to the issue of a letter of award from the Energy Commission. The plant is expected to contribute positively to the future earnings of the ILB group.