EC revokes approval for Malakoff’s plant project

PETALING JAYA: The Energy Commission (EC) has revoked its approval for Malakoff Corp Bhd for the construction of a 50MW large-scale solar photovoltaic plant in Tanjung Malim.

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 last month as it was unable to reach mutual agreement on certain terms and conditions with Malakoff.

In a filing with the stock exchange, Malakoff said EC had via its letter dated March 16 informed the rejection of the company’s appeal to change its original land site of the project from Tanjung Malim to another land site.

“The appeal was made due to the fact that the land owner of the original land site in Tanjung Malim, is no longer able to commit to lease the land for the duration of the project due to its ongoing corporate exercise,” Malakoff noted.

According to EC, the rejection was also due to the relocation which will delay the finalisation of the solar power purchase agreement and the scheduled commercial operations of the project as prescribed by EC.

Malakoff is of view that the withdrawal will not affect its earnings and net assets for the financial year ending Dec 31, 2017.