DENGKIL: Earthworks and civil engineering construction services provider Wawasan Dengkil Holdings Bhd’s wholly-owned subsidiary, Wawasan Dengkil Sdn Bhd (WDSB), has entered into a shareholders’ agreement with Nestcon Infra Sdn Bhd, and WD Solar Kedah Sdn Bhd to co-invest and develop a 70 megawatt (MW) large-scale solar photovoltaic (PV) plant and ancillary equipment and facilities under the LSS Petra 5+ programme located at Mukim Ayer Puteh, Kedah.
To facilitate the proposed joint venture, a JV Co was incorporated to develop, finance, construct, operate and maintain Project LSS5+, with a shareholding structure of WDSB at 70% and Nestcon at 30%.
The Project will be undertaken under a 21-year solar power purchase agreement (PPA) with Tenaga Nasional Bhd, enabling the long-term sale of renewable electricity and providing the group with a recurring revenue stream.
In conjunction with this, Wawasan Dengkil proposes to diversify the group’s and its subsidiaries’ principal activities to include investment in renewable energy and related activities.
Wawasan Dengkil executive director Lim Soon Yik said the diversification allows the company to evolve from a construction-focused contractor into a renewable energy asset investor and operator.
“This strategic move supports Malaysia’s energy transition and enables the group to build recurring income alongside our core infrastructure business.
“Our previous involvement in many solar farm earthworks and infrastructure works has provided a strong foundation for this shift.
“With rising emphasis on ESG practices and the continued growth of the renewable energy industry, this is a timely step forward for the group.
“By leveraging our capabilities and established network in the construction sector, we are well-positioned to pursue opportunities in solar development,” Lim said.
He said Malaysia’s solar sector continues to expand, supported by the government’s target of achieving a 70% share of installed capacity from renewable energy by 2050 under the National Energy Transition Roadmap (NETR).
Meeting this ambition will be driven primarily through solar PV installations, with significant solar capacity growth required over the next three decades, reaching an estimated 59 GW by 2050.
“We see solid long-term prospects for the sector, and this joint venture gives Wawasan Dengkil a meaningful opportunity to be part of that growth,” said Lim.
Barring unforeseen circumstances and subject to all requisite approvals, the JV is expected to be implemented in the fourth quarter of 2025.
The diversification exercise will take immediate effect upon obtaining shareholders’ approval of Wawasan Dengkil at the EGM to be convened.
