Malakoff’s SPVs win FiT for hydro projects

By SHAHEERA AZNAM SHAH / Pic By MUHD AMIN NAHARUL

MALAKOFF Corp Bhd’s special- purpose vehicles (SPVs) — Batu Bor Hidro Sdn Bhd and Lubuk Paku Hidro Sdn Bhd — were awarded two small hydro projects under the government’s competitive feed-in tariff (FiT) e-bidding process.

In a filing to the local bourse, the independent power company stated that the SPVs will be entering into a renewable-energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB) for the 21-year period respective for the two small hydro projects in Peninsular Malaysia.

Batu Bor Hidro and Lubuk Paku Hidro will have the installed capacity of 30MW and 25MW respectively, with bid tariff of 29 sen per kWh. Both SPVs are among the 15 successful bidders of the hydro projects.

Malakoff said the project is not expected to impact its earnings and net assets for the financial year ending Dec 31, 2019.

In September, Malakoff’s unit, Tuah Utama Sdn Bhd, entered into two subscriptions for 32,500 new shares of the enlarged share capital of Batu Bor Hidro and Lubuk Paku Hidro.

The move will enable Tuah Utama to participate in the business of small hydro projects in Malaysia through the SPVs.

The total share capital of each of the SPVs was RM50,000, comprising 50,000 shares which had been issued and fully paid-up at a subscription price of RM1 each, which Tuah Utama holds a 65% share and Touch Meccanica Sdn Bhd the remaining 35% stake.