Citaglobal said the award is pursuant to a request for proposal from Malaysia Rail Link Sdn Bhd (MRL) for the development of an independent and renewable power producer for the ECRL.
PETALING JAYA: A 50:50 joint venture between Citaglobal Bhd
and Reneuco Bhd has received and accepted a letter of intent to become the independent power producer (IPP) for the East Coast Rail Link (ECRL) project.
In a filing with Bursa Malaysia, Citaglobal, formerly known as WZ Satu Bhd, said the award is pursuant to a request for proposal from Malaysia Rail Link Sdn Bhd (MRL) for the development of an independent and renewable power producer for the ECRL.
In accordance with the letter, MRL intends to engage the consortium for the planning, design, financing, development, construction, installation, completion, commissioning and operation of the ECRL IPP project.
The award is subject to the execution of a formal contract agreement to be entered into between the consortium members, Citaglobal and Reneuco, formerly known as KPower Bhd, with MRL in due course. The estimated cost of the project was not disclosed.
In a statement, Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria, who is also a major shareholder of the company, said the contract is aligned with its vision to become a major player in the renewable energy segment and to build a recurring income base.
“We are grateful and honoured to have won this national contract via a competitive bidding exercise. Citaglobal will definitely do its part in executing and realising the ECRL IPP project together with our partner, Reneuco,” he added.
Prime Minister Datuk Seri Anwar Ibrahim yesterday said the ECRL project will continue on its existing alignment under the new government and will cost RM11.1bil less than the previous estimates of RM85.97bil reported in 2016.
The ECRL project is a 640km-long railway link connecting different parts of the east coast region with the west coast region in Peninsular Malaysia.
It connects state capitals, major urban centres, industrial hubs, ports, airports and tourism zones and it interchanges with existing railway lines in the peninsula.
“The ECRL project is poised 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 Peninsular Malaysia,” Citaglobal added.
MRL, an entity of the of Finance Ministry, is the owner of ECRL project, an electrified railway project by the government linking the East Coast states of Kelantan, Terengganu and Pahang to the Greater Klang Valley region.
