GCAP to jointly raise fund, develop RM3 bil mini-hydropower project in Sabah

MAIN Market-listed G Capital Bhd (GCAP) has made its maiden foray into East Malaysia by tapping the enormous prospect in Sabah’s renewable energy (RE) scene.

This follows the inking of a joint venture-cum-shareholders’ agreement between its wholly owned subsidiary CM Creative Itinerary Sdn Bhd yesterday (Oct 18) with Innoprise Synergy Sdn Bhd and Kerap Hijau Sdn Bhd to jointly develop mini-hydropower projects in Sabah.

State-owned foundation, the Yayasan Sabah Group is the holding company of Innoprise while Kerap Hijau has received approval to assume the name of Sabah Renewable Energy Corp Sdn Bhd (SREC).

A filing with Bursa Malaysia shows that the signatories have agreed to collectively pool their resources to raise funds of not less than RM3 bil to develop the first 200MW (megawatt) mini-hydropower project.

SREC is principally involved in the operation of electric energy and general trading while Innoprise is involved in managing and operating independent power distribution.

“As one of the renowned RE (renewable energy) players in Malaysia’s mini-hydropower plant development, GCAP is definitely an asset towards Sabah achieving its Sabah Maju Jaya vision,” commented Innoprise and Yayasan Sabah representative Tan Sri Pandikar Amin Mulia.

Tan Sri Pandikar Amin Mulia

“Having envisaged the JV to fuel the transformation of Green Sabah under the Sabah Maju Jaya vision, the parties have first identified five hydropower schemes with an estimated capacity of 65.3MW.”

Estimated to deploy RM1 bil, the completion of such mini-hydropower schemes is expected to be a solution to the energy crisis faced by Sabahans on top of an annual revenue yield of RM85 mil to the shareholders.

The five identified hydropower schemes are to be located in (i) Sg Bayoyo (Sg Bunsit); (ii) Sg Rayoh; (iii) Sg Mokodou; (iv) Sg Wariu; and (v) Sg Panataran (Sg Melangkap).

“(Further to that),we are setting the paths to raise RM3 bil to develop the mini-hydropower schemes. Strategic alliance with GCAP boosts our confidence to bring a positive impact to Sabah from a socio-economic perspective while preserving the environment,” added Amin.

Meanwhile, GCAP executive director Datuk Yap Yee Ping is optimistic about successfully raising fund to develop the mini-hydropower schemes by joining forces with Innoprise and SREC.

“The joint development of mini-hydropower projects in Sabah is in line with Malaysia’s target to reach 31% of RE share in the national installed capacity mix by 2025,” she pointed out.

“The GCAP group will stand out as one of the leading RE players in Malaysia by being able to offer sustainable energy solutions while improving the group’s financial performance, position and reputation.”

At the close of yesterday’s (Oct 18) trading, GCAP was up 2 sen or 3.331% to 62.5 sen with 2.4 million shares traded, thus valuing the company at RM200 mil. – Oct 19, 2022

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