GCAP, YAYASAN SABAH TO JOINTLY DEVELOP MINI-HYDROPOWER PROJECTS IN SABAH

KUALA LUMPUR, Oct 18 (Bernama) -- G Capital Bhd’s (GCAP) wholly-owned subsidiary, CM Creative Itinerary Sdn Bhd, has entered into a joint-venture (JV) and shareholders’ agreement with Innoprise Synergy Sdn Bhd and Kerap Hijau Sdn Bhd to develop mini-hydropower projects in Sabah.

In a filing with Bursa Malaysia today, GCAP said the parties involved have agreed to collectively pool their resources and raise at least RM3 billion to develop the first 200-megawatt (MW) mini-hydropower projects, to be financed via a combination of fund-raising exercises and bank borrowings.

State-owned organisation Yayasan Sabah Group is the holding company of Innoprise while Kerap Hijau has received approval to assume the name of Sabah Renewable Energy Corporation  Sdn Bhd (SREC). 

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The group said SREC principally operates generation facilities that produce electric energy and general trading while Innoprise is involved in managing and operating independent power distribution.  

Innoprise chairman cum representative of Yayasan Sabah, Tan Sri Pandikar Amin Mulia, said GCAP is one of the renowned renewable energy (RE) players in Malaysia in mini-hydropower plant development and is definitely an asset towards Sabah achieving the Sabah Maju Jaya vision.

He said the JV was envisaged to fuel the transformation of Green Sabah under the Sabah Maju Jaya vision and has 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 Sabahans on top of an annual revenue yield of RM85 million to the shareholders.

“We are setting paths to raising RM3 billion to develop the mini-hydropower projects. The strategic alliance with GCAP boosts our confidence to bring a positive impact to Sabah in terms of the socioeconomic (status) whilst preserving the environment,” he said.

The five hydropower schemes are Sg Bayoyo (Sg Bunsit) hydropower scheme, Sg Rayoh hydropower scheme, Sg Mokodou hydropower scheme, Sg Wariu hydropower scheme, and Sg Panataran (Sg Melangkap) hydropower scheme.  

Meanwhile, GCAP executive director Datuk Yap Yee Ping said the project would be the group’s maiden foray into the RE business in Sabah and Sarawak.

By joining forces with Innoprise and SREC, the group is confident of successfully raising the funds to develop the mini-hydropower projects, he said. 

“The joint development of mini-hydropower projects in Sabah is in line with Malaysia’s target to reach 31 per cent of RE share in the national installed capacity mix by 2025.

“GCAP will stand out as one of the leading renewable energy players in Malaysia, offering sustainable energy solutions and improving the group’s financial performance, financial position and reputation,” he added.

-- BERNAMA