PETALING JAYA: G Capital Bhd (GCAP) via wholly owned subsidiary CM Creative Itinerary Sdn Bhd, has entered into a joint venture and shareholders’ agreement with Innoprise Synergy Sdn Bhd and Kerap Hijau Sdn Bhd to jointly develop mini-hydropower projects in Sabah.
The parties have agreed to pool their resources to raise funds of not less than RM3 billion for developing the 200MW mini-hydropower projects.
State-owned organisation Yayasan Sabah Group is the holding company of Innoprise. Kerap Hijau has received approval to assume the name of Sabah Renewable Energy Corp Sdn Bhd (SREC).
SREC is principally in the operation of generation facilities that produce electric energy and general trading, whilst Innoprise is involved in managing and operating independent power distribution.
Yayasan Sabah representative and Innoprise chairman Tan Sri Pandikar Amin Mulia said the parties envisaged the joint-venture to fuel the transformation of Green Sabah under Sabah Maju Jaya vision, and have first identified five hydropower schemes with an estimated capacity of 65.3MW.
“Estimated to deploy RM1 billion, the completion of such mini-hydropower schemes brings solutions to the energy crisis faced by Sabahan on top of an annual revenue yield of RM85 million to the shareholders,” he said in a statement.
The five hydropower schemes are Sg Bayoyo (Sg Bunsit), Sg Rayoh, Sg Mokodou, Sg Wariu and Sg Panataran (Sg Melangkap).
“We are setting paths to raising RM3 billion to develop the mini-hydropower projects. Strategic alliance with GCAP boosts our confidence to bring a positive impact to Sabah in terms of the socioeconomic whilst preserving environment,” Pandikar Amin said.
GCAP executive director Datuk Yap Yee Ping said it will be the group’s maiden foray into the renewable energy (RE) business in Sabah, and East Malaysia. As it join forces with Innoprise and SREC, it has confidence in the fundraising exercises to develop the mini-hydropower projects.
“The joint development of mini-hydropower projects in Sabah is in line with Malaysia’s target to reach 31% of RE share in the national installed capacity mix by 2025. GCAP group will stand out as one of the leading RE players in Malaysia, offering sustainable energy solutions and improving the group’s financial performance, financial position and reputation,” Yap said.