A 50:50 joint venture consortium between Reneuco Bhd (formerly known as KPower Bhd) via a consortium with Citaglobal Bhd (formerly known as WZ Satu Bhd) has been awarded a tender to develop an independent power producer (IPP) project for the East Coast Rail Link (ECRL) network.
The consortium, which accepted a letter of intent from Malaysia Rail Link Sdn Bhd (MRL), will undertake the planning, design, financing, development, construction, installation, completion, commissioning and operation of the project, according to Reneuco in a statement.
The proposal submitted by the consortium involves the supply of renewable power to commercial or industrial parks along the ECRL’s alignment.
“We have put a lot of effort in winning this bid amidst formidable competitors. This contract will showcase our ability and commitment with likeminded partners to accelerate sustainability living and green mobility particularly along the ECRL alignment,” said Reneuco executive chairman and major shareholder Datuk Mustakim Mat Nun.
“We believe that with Reneuco’s and Citaglobal’s long-established track records in our respective industries, the consortium is well positioned to leverage on our respective expertise to ensure the execution of this large-scale IPP project goes smoothly and successfully.”
The ECRL project is a 640km railway link connecting different parts of the east coast region with the west coast region in Malaysia.
ECRL connects state capitals, major urban centres, industrials hubs, ports, airports, and tourism zones and it interchanges with existing railway line in Peninsular Malaysia.
MRL, a wholly-owned subsidiary of the Finance Ministry, is developing the project and will operate it in a 50:50 joint venture with China Communications Construction Company.
The Transport Ministry, through the Agensi Pengangkutan Awam Darat (APAD), will supervise and regulate the project.
The ECRL project is poised to help boost Malaysia’s economy and is also part of the East Coast Economic Region Masterplan to achieve equitable growth and development between the east and west of Malaysia. – Dec 22, 2022
Main photo credit: The Edge