PETALING JAYA: Jentayu Sustainables Bhd
has received a letter of notification (LON) from the Energy Commission of Sabah for Project Oriole, a 162 megawatts (MW) run-of-river hydropower plant in Sipitang, Sabah.
In a filing with Bursa Malaysia, Jentayu said the project will generate a revenue of approximately RM270mil per annum and contribute positively to the company.
“The project upon completion, will provide additional generation capacity of 162MW for Sabah,” said Jentayu, adding that it is expected to be funded via a debt-to-equity ratio of 80:20.
“However, key terms of funding have yet to be finalised. To date, the company has spent RM82.3mil in development expenses, which will be capitalised as part of contribution to the equity requirements of the project.”
Jentayu said it had obtained shareholders approval on Dec 18, 2020 for the diversification of its existing principal activities to include amongst others, renewable energy business.
As part of its strategic plan to grow its renewable energy business, the company received the rights to develop the project in 2021.
