AE Multi to invest RM140m in tie-up with JMT Kelantan for hydro-power plants

Signing on behalf of JMT is managing director Navamaaran Puspanadan (left) while AEM was represented by managing director Yang Chao Tung. It was witnessed by AEM executive chairman Yang Wu Hsiung.

KUALA LUMPUR:  Printed circuit boards manufacturer AE Multi Holdings Bhd is venturing into renewable energy industry with a proposed investment of RM140mil in a tie-up with JMT Kelantan Baru Sdn Bhd.

AEM will team up with JMT which designs, constructs and operates mini hydro-power plants.

AEM signed a heads of agreement with JMT on Thursday. Pursuant to the agreement, both parties will negotiate the terms and conditions of the proposal. The plan is to finalise and ink a definitive agreement within 45 days.

JMT shall grant AEM the right to operate and maintain two 10 megawatt (MW) integrated flood mitigated mini-hydro power project in Joh Labok and Temangan in  Machang, Kelantan.

AEM shall be entitled to 80% of the total profit from the sale of power to Tenaga Nasional Bhd under the renewable power purchase agreements (REPPAs) signed between JMT and the power company.

This is conditional upon AEM investing RM140mil and AEM will undertake a corporate exercise to raise funds for the investment. 

As for JMT, it will design, build and commission the renewable energy installation projects.

JMT is the holder of two feed-in approvals issued by the Sustainable Energy Development Authority Malaysia for two renewable energy installations which it will build.

Signing on behalf of JMT was managing director Navamaaran Puspanadan while AEM was represented by managing Director Yang Chao Tung. It was witnessed by AEM executive chairman Yang Wu Hsiung.