DRB-Hicom pulls out of solar project

  • Business
  • Friday, 17 Feb 2017

PETALING JAYA: Conglomerate DRB-Hicom Bhd is pulling out of the proposed 50MW large-scale solar photovoltaic (PV) plant in Tanjung Malim, Perak, after the company could not come to an agreement with partner Malakoff Corp Bhd over certain terms and conditions of the project.

The company said in a filing with Bursa Malaysia that indirect subsidiary DRB-Hicom Environmental Services Sdn Bhd (DHES) has withdrawn from the consortium to undertake the 50MWac project with Malakoff.

“DHES and Malakoff have been unable to reach a mutual agreement on certain terms and conditions of the joint venture (JV) which will undertake the project,” it said.

Hicom Holdings Bhd, a unit of DRB-Hicom, owns a 97.37% stake in Alam Flora Sdn Bhd, which in turn owns DHES.

Last December, Malakoff and DHES announced that they would undertake the construction and development of a 50MWac large-scale solar PV plant of approximately 200 acres, located in Tanjung Malim.

Malakoff held a 51% stake in the JV, while DHES held the remainder.

The project involved the financing, designing, supplying, building, owning, operating and maintenance of a 50MW large-scale solar PV plant on a build, own and operate basis, with the expected commercial operation date on July 1, 2018 for a term of 21 years under the power purchase agreement.

The cost of the solar project has not been made known.

To recap, the consortium had participated in a competitive bidding exercise for the project and had submitted a bid on Sept 23, 2016.

The Energy Commission accepted the consortium’s offer as stated in the bid and selected the consortium as the shortlisted bidder.

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