JAG Bhd has signed a land lease agreement to participate in the bidding for the LSS@MEnTARI or large scale solar programme for a proposed capacity of up to 29MWac.
The waste management services provider said in a bourse filing today that its unit JAG Renewable Energy Sdn Bhd (JRESB) had entered into an agreement with Perak-based construction and property development firm RH Silver Sdn Bhd (RHSSB) to lease 45.32ha of land in Manjung to bid for the project.
Power plants under the LSS@MEnTARI programme are expected to start operating by end-2023, with the development of each plant taking up to 18 months, JAG said.
JRESB is to lease the land for 23 years, including a renewal term of 10 years or such other periods as may be mutually agreed upon by RHSSB and JRESB and commencing immediately after the expiry of the lease term.
JAG chairman and executive director Stacey Tan Siew Ching said the agreement was part of the group’s commitment to diversifying its earnings stream.
“We are currently making significant progress in working towards the tender process by developing and collating all the necessary documents. We are positive we will be able to meet all the requirements and the submission deadline,” she said.
While e-waste management would continue to be JAG’s core business, Tan said that diversification would allow the group to expand its income stream “while mitigating our reliance on commodity prices and exchange rates, which fluctuate according to the market.”
JAG’s share price was 6.25% down at 8 sen at 4.06 pm, giving the company a market capitalisation of RM145.9 mil. – Aug 6, 2020
