Citaglobal-Reneuco form consortium for ECRL IPP project

CITAGLOBAL Bhd has formalised a consortium agreement with Reneuco Bhd via a new special purpose vehicle (SPV) for the East Coast Railway Link (ECRL) independent power producer (IPP) project.

Citaglobal will hold a 60% stake in Citaglobal Reneuco ECRL Energy Solution Sdn Bhd, while Reneuco Bhd will hold the balance 40% in the SPV.

The initial share capital of this consortium company shall be RM500,000, where Citaglobal shall contribute RM300,000 (60%) and Reneuco shall contribute RM200,000 (40%) respectively.

Citaglobal and Reneuco received and accepted a letter of intent to become the IPP for the ECRL project in December last year. Back then, this was a 50:50 joint venture consortium.

The consortium is currently finalising the contract award of the ECRL IPP project with Malaysia Rail Link Sdn Bhd (MRL). MRL is the owner of the ECRL project.

MRL is an entity of the Ministry of Finance (MOF Inc.) of Malaysia to administer the implementation of the ECRL.

MRL is developing the ECRL Project and will operate it in a 50:50 joint venture with China Communications Construction Company. The Ministry of Transport, through Agensi Pengangkutan Awam Darat (APAD), will supervise and regulate the project.

Astramina Advisory Sdn Bhd is the appointed financial adviser to Citaglobal for the consortium joint venture.

“The Citaglobal-Reneuco consortium is grateful for the exclusivity in implementing the ECRL IPP project. This exclusivity will allow us to ensure security and stability of power supply along the entire infrastructure even when there is increased demand when more industrial developments take place,” said Citaglobal Executive chairman and president and major shareholder Tan Sri Datuk Sri Mohamad Norza Zakaria said.

The ECRL project is a 665km railway link connecting different parts of the east coast region with the west coast region in Malaysia.

ThE project is expected to help boost Malaysia’s economy and is also part of the East Coast Economic Region Masterplan to achieve equitable growth and development between the east and west of Malaysia. – TMR / pic TMR File