by ASILA JALIL/ pic by BERNAMA
WASTE management company JAG Bhd has signed a lease agreement with RH Silver Sdn Bhd to participate in a bidding process for a large-scale solar project — Malaysia Electricity Industry to Attract Renewable Energy Investment ([email protected] MEnTARI) — a Malaysian government initiative.
In a Bursa filing yesterday, the group said its unit JAG Renewable Energy Sdn BHD (JRESB) had entered into the agreement with the Perak-based construction and property development firm to lease 112 acres (45.32ha) of land for the bidding project, for a proposed capacity up to 29MW.
The solar power plant under the [email protected] MEnTARI programme is expected to commence operation by Dec 31, 2023, with the development of each plant taking up to 18 months.
The Ministry of Energy and Natural Resources through the Energy Commission Malaysia has opened a bidding process for the programme on May 31.
The programme offers 1,000MW of solar quota through the bidding process and is opened to fully-owned local companies or with at least 75% local shareholding for companies listed on Bursa Malaysia Securities Bhd.
JRESB will lease the land for 23 years with a renewal term of 10 years or another period that will be mutually agreed upon by both parties in the agreement commencing immediately after the expiry of the lease term.
JAG’s chairperson and ED Datin Stacey Tan Siew Ching said the agreement offers strong prospects for the group’s overall growth.
“Our core business will always remain as e-waste management. There are vast opportunities in the industry, as we expect this division to grow.
“However, this diversification is our way of expanding our income stream while mitigating our reliance on commodity prices and exchange rates, which fluctuates according to the market,” she added.
Meanwhile, the group is expecting an improved growth for the financial year 2020 backed by its solid foundation and sharp strategy.
It’s ED Datuk Ng Meow Giak said the group was able to deliver a strong fourth quarter (4Q19) despite muted results for the full financial year (FY19).
“This positive streak has continued in 2020, with the group registering a profit after tax of RM1.5 million for 1Q20.
“While the uptrend in commodity prices such as copper, gold, silver and palladium has contributed to these positive results, we firmly believe it is our commitment,” he said.
For FY19, the group recorded a loss after tax of RM12 million on the back of a turnover of RM140 million, primarily due to the recognition of an impairment loss in the group’s property development division.