PETALING JAYA: Earthworks and civil engineering construction services provider Wawasan Dengkil Holdings Bhd has obtained shareholders’ approval for a joint venture among wholly owned subsidiary Wawasan Dengkil Sdn Bhd (WDSB), Nestcon Infra Sdn Bhd and WD Solar Kedah Sdn Bhd (JV Co).
The joint venture will co-invest in JV Co and develop a 70-megawatt large-scale solar photovoltaic plant, along with ancillary equipment and facilities, under the LSS Petra 5+ Programme (Project LSS5+), located at Mukim Ayer Puteh, Kedah.
WDSB will hold 70% equity interest in JV Co, while Nestcon Infra will hold the remaining 30%.
Project LSS5+ has an estimated total investment cost of RM187 million, of which about 85% is expected to be funded through bank financing, with the balance financed via equity contributions and shareholder advances.
Wawasan Dengkil shareholders approved the deal at an extraordinary general meeting (EGM) on Friday.
At the same EGM, shareholders also approved diversifying the group’s existing principal activities to include investment in renewable energy and related activities.
Wawasan Dengkil executive director Lim Soon Yik said the diversification reflects the group’s strategic progression beyond its core construction activities.
“Our prior experience in delivering solar farm earthworks and infrastructure works has provided a strong operational foundation for this transition.
“With shareholders’ approval secured, the timing is strategically aligned with the growing emphasis on ESG practices and the continued expansion of Malaysia’s renewable energy sector, enabling the Group to participate more directly in the country’s energy transition opportunities,“ he said after the EGM.
Anchored by Project LSS5+, the diversification broadens the group’s earnings base beyond construction through ownership of renewable energy assets.
Under a 21-year solar power purchase agreement with Tenaga Nasional Bhd, Project LSS5+ will provide long-term, recurring income through the sale of renewable electricity.
Construction of Project LSS5+ is expected to commence in the third quarter of 2026, with commercial operation targeted by Feb 29, 2028.
In parallel, Wawasan Dengkil continues to maintain a healthy construction pipeline.
As of Sept 30, 2025, the group is managing 13 ongoing projects with an unbilled order book of RM348.7 million.
Subsequently, the group accepted a letter of award dated Nov 24 from Warisan Infra Sdn Bhd for flood mitigation works at Sungai Langat, Selangor, with a contract value of RM16.1 million, which is not included in the reported order book.
Lim said, “Looking ahead, we remain confident in Wawasan Dengkil’s prospects, supported by a robust tender book of approximately RM1.6 billion, comprising RM1.0 billion from earthworks and civil engineering services and RM0.6 billion from solar farm infrastructure works.
“The industry outlook is positive, underpinned by Malaysia’s National Energy Transition Roadmap targeting a 70% renewable energy share of installed capacity by 2050, alongside continued vibrancy in the construction sector boosted by the massive RM430 billion allocations under the 13th Malaysia Plan.”
