Cypark obtains PPA revision for LSS3 project


Cypark executive chair Datuk Ami Moris.

KUALA LUMPUR: Cypark Resources Bhd has been granted an extension of time (EoT) for the long-delayed completion of its third cycle of large scale solar (LSS3) photovoltaic plant of 100MW in Merchang, Terengganu.

In a filing with Bursa Malaysia on Wednesday, Cypark announced that its 70%-owned subsidiary, Cypark Suria Merchang Sdn Bhd (CSM), had received a notification letter from the Energy Commission (EC) that the application for EoT had been approved by the Energy Transition and Water Transformation Ministry for the achievement of the commercial operation date (COD) for its LSS3 project.

It said the approval of the EoT involved the revision of the period of power purchase agreement (PPA) and that CSM is allowed to participate in any other energy supply programme and initiatives already launched by the government during the period after the revised PPA period.

Cypark executive chair Datuk Ami Moris said in a statement that it was a much-needed EoT as its single-largest shareholder Jakel Capital Sdn Bhd was pumping in fresh funds to revitalise and to accelerate the completion of the project.

“We are also truly appreciative of the understanding and trust of the EC, the single buyer as well as Tenaga Nasional Bhd.

“With this EOT, any potential exposure to penalties or liquidated ascertained damages relating to the project is now put to rest,” he said.

Cypark had in June announced that it had achieved the COD of its LSS3 solar plant project, which was scheduled for completion in March 2022, but delayed until December 2023.

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