MBSB Bank Allocates RM78 Mln Financing For Kedah Water Infrastructure Solar Projects

BALING, Sept 3 (Bernama) -- MBSB Bank Bhd has allocated RM78 million in Shariah-compliant financing to support the implementation of solar energy projects at 32 facilities owned by Syarikat Air Darul Aman (SADA) throughout Kedah.

The financing will support a project carried out by Dekad Aliran Sdn Bhd, with a total solar energy capacity of up to 22 megawatts (MW) expected to be generated by the end of 2027.

MBSB’s chief executive officer, Rafe Haneef, said the financing reflects the role of Shariah-compliant financing in accelerating the transformation of public infrastructure towards more sustainable energy use.

"Through financing infrastructure transformation projects like this, we help bridge the gap between the country's aspirations towards decarbonisation and actual implementation on the ground.

"This transaction also demonstrates how Shariah-compliant financing can act as a catalyst for a more sustainable transition in the country's key sectors," he said in a statement today.

He added that MBSB’s financing structure also allows the project to be implemented without requiring initial capital expenditure by SADA, thereby enabling the state water company to benefit from energy savings without incurring significant investment costs at the initial stage.

Meanwhile, the statement said that the project allows SADA to generate its own clean energy at its water treatment plants (WTP), thereby reducing dependence on conventional electricity supply and helping to stabilise energy costs in the long term.

The first phase of the project involves an investment of RM5.77 million in three WTPs, namely the new Kuala Ketil WTP, the old Kuala Ketil WTP and the Sungai Ular WTP, with more than 2,500 solar panels to be installed at all three locations.

It noted that the initial phase is expected to generate approximately 200,000 kilowatt-hours (kWh) of net energy per year, in addition to providing savings of up to 15 per cent on monthly electricity bills.

The project is expected to provide energy cost stability for a period of up to 30 years and reduce carbon dioxide (CO₂) emissions by 1,100 tonnes per year, equivalent to the impact of planting approximately 50,000 trees per year.

SADA's chief executive officer, Datuk Radzuan Osman, said that the installation of solar systems at 32 facilities opens a new dimension to water treatment operations as SADA facilities not only use energy but are also capable of generating their own energy.

"This collaboration allows us to improve operational efficiency, better plan energy costs for the long term, and directly contribute to efforts to tackle climate change.

"At the same time, it strengthens our ability to continue providing quality and sustainable water supply to the people of Kedah," he added.

-- BERNAMA