GCAP, Yayasan Sabah to raise RM3bil for mini-hydropower projects

KUALA LUMPUR: G Capital Bhd via its wholly-owned subsidiary, CM Creative Itinerary Sdn Bhd has entered into a joint venture and shareholders’ agreement (JVSHA) with Innoprise Synergy Sdn Bhd and Kerap Hijau Sdn Bhd to jointly develop mini-hydropower projects in Sabah.

State-owned organisation Yayasan Sabah Group is the holding company of Innoprise. Kerap Hijau has received approval to assume the name of Sabah Renewable Energy Corporation Sdn Bhd (SREC).

The parties have agreed to collectively pool their resources to raise funds of not less than RM3bil for developing the first 200MW mini-hydropower projects.

“The parties envisaged the joint venture to fuel the transformation of Green Sabah under Sabah Maju Jaya vision, and have first identified five hydropower schemes with an estimated capacity of 65.3MW,” Innoprise chairman cum representative of Yayasan Sabah Tan Sri Panglima Pandikar Amin Mulia said in a statement.

“Estimated to deploy RM1bil, the completion of such mini-hydropower schemes brings solutions to the energy crisis faced by Sabahan on top of an annual revenue yield of RM85mil to the shareholders,” he added.

The five hydropower schemes are Sg Bayoyo (Sg Bunsit) hydropower scheme, Sg Rayoh hydropower scheme, Sg Mokodou hydropower scheme, Sg Wariu hydropower scheme and Sg Panataran (Sg Melangkap) hydropower scheme.

“We are setting paths to raising RM3bil to develop the mini-hydropower projects. Strategic alliance with GCAP boosts our confidence to bring a positive impact to Sabah in terms of the socioeconomic whilst preserving environment,” Amin said.

Meanwhile, GCap executive director Datuk Yap Yee Ping said: “This will be our maiden foray into the renewable energy (RE) business in Sabah and East Malaysia. Joining forces with Innoprise and SREC, we are confident in successful funding raising exercises to develop the mini-hydropower projects.”