KUALA LUMPUR: Jentayu Sustainables Bhd has announced that the hydropower plant Telekosang Hydro 2 (TH2) has now achieved its initial operating date as of Dec 9, 2023, with a target feed-in-tariff commencement date (FiTCD) within the next 30 days.
Together with the FiTCD of Telekosang Hydro 1 (TH1) in February, Jentayu said in a statement that the successful commissioning of both hydropower plants is a major step towards satisfying the condition precedent necessary for the company to acquire TH1 and TH2.
This, it said, would be subject to final approval by shareholders and regulators.
“TH1 and TH2 together generate 40 megawatts (MW) of power and were developed by Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd - companies which are operated by the major shareholders of Jentayu.”
Jentayu said the acquisition of Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd represents a major milestone in its plans to transform its business and strengthen its financial position.
The company said the first stage of this plan involves the injection of TH1 and TH2 as well as a solar photovoltaic plant generating 5.99MW located in Pokok Sena, Kedah into Jentayu.
“Approximately 9% of the consideration of this transaction was settled via a cash deposit that has already been paid, while the outstanding balance of 91% will be settled fully via the issuance of new shares, upon receiving approval from regulators and shareholders.
“Once this injection is complete, Jentayu will be poised to progress to the next important stage of our plan - the completion of our next hydropower plant in development, Project Oriole.”
Project Oriole involves two runs of the river hydropower cascading schemes to be constructed along Sungai Malingan and Hulu Sungai Padas in Sipitang, Sabah that will produce 170MW of power.
The project is estimated to cost RM 2.8bil to develop and is expected to be completed by December 2027.
“Project Oriole is being developed following the same six chronological development phases that were used in the proven and successful development and commissioning of TH1 and TH2.”
Having successfully completed Phases 1-3, Project Oriole is now in Phase 4.
Jentayu said it has spent RM 73.67mil thus far in completing Phases 1-3 for Project Oriole.
“This consists of 2.6% of the total project budget, which is similar to the benchmarks achieved at similar stages for TH1 and TH2.”
The group said it is now looking to utilise an additional RM26mil to ensure the completion of Phase 4 for Project Oriole and progression to Phase 5.
“This amount is for technical, financial and legal fees to ensure the tender process and all related compliance requirements are followed and to ensure that the interests of Jentayu are protected.”
The group expects to fund Phase 4 of Project Oriole via a private placement.