G CAPITAL Bhd has entered into a joint venture and shareholders’ agreement with Worldwide Energy Development Sdn Bhd and Cekap Hydropower Sdn Bhd to jointly participate in the e-bidding submission for small hydro quota 2021.
Worldwide Energy is a wholly-owned subsidiary of Worldwide Holdings Bhd which focuses on five main businesses: property, environmental management services, medical device manufacturing, energy, and project management and green technology.
“In the event the bid is successful, Cekap Hydropower intends to design, construct, develop, operate and maintain a mini-hydropower plant at Sungai Bernam with an estimated installed capacity of 6MW (megawatt) and all relevant works,” G Capital pointed out in a statement.
The Sungai Bernam project has a potential to generate revenue of up to RM271.7 mil to the parties over a span of 21 years from the date of commission.
Recall that on May 11, G Capital announced its intention to diversify the existing core business of the company and its subsidiaries to include the provision of energy solution by tapping on its renewable energy assets.
“We have undertaken various measures over the last few years to transform G Capital into a more resilient and sustainable business,” its executive director Tan Sri Dr Ali Hamsa had pointed out.
“With two strong renewable energy assets on our plate – Mini-Hydropower Plant through our stake in Perak Hydro Renewable Energy Corporation Sdn Bhd and solar projects through our recently completed acquisition in Solarcity Malaysia Sdn Bhd, this will help the group to reduce its reliance on the transportation services sector.”
In retrospect, the transportation segment has been the sole revenue contributor to group before the construction and commissioning of its mini-hydropower projects.
Similarly, discontinuation of the National Service Training Programme in 2018 has taken a toll to the group’s financial performance, coupled with the strong headwinds of COVID-19 pandemic starting from 2020.
Currently, the group targets to accelerate development of its current mini hydropower projects by embarking and diversifying into the provision of energy solutions and prioritising the expansion of its renewable energy segment.
At the close of today’s morning session, G Capital was down 0.5 sen or 0.62% to 79.5 sen with 187,800 shares traded, thus valuing the company at RM255 mil. – June 25, 2021
