Mini hydro project to take off in Pahang

KUALA LUMPUR: Makmur Hidro Sdn Bhd, which was incorporated just three days ago, is embarking on a 30MW low-head, run-of-river mini hydro project in Maran, Pahang, with Touch Meccanica Sdn Bhd for an estimated RM350 million.
Filings with the Companies Commission of Malaysia show that Makmur Hidro was incorporated on Monday. Details on its shareholders were unavailable.
While Makmur Hidro does not have any track record in the hydropower business, Makmur Hidro managing director Mohd Fozae Samad stressed that its associate company Green & Smart Holdings Plc is well exposed to infrastructure and concession projects, especially involving independent power producers.
"That's why we have Touch Meccanica as our partner. They have exposure in civil engineering and other infrastructure projects," he told reporters after the signing ceremony here yesterday.
Green & Smart was listed on the London Stock Exchange's AIM on May 12 following its initial public offering that raised £4.0 million (RM20.9 million). It generates power from biogas captured through the treatment of palm oil mill effluent in Malaysia.
For the first half of 2016, Green& Smart reported a net profit of RM4.8 million, a 16-fold jump compared with RM300,000 in the same period last year. As at end-March 2016, its cash and cash equivalents were RM5.2 million.
Green & Smart managing director Saravanan Rasaratnam is also a director of Makmur Hidro.
Makmur Hidro yesterday signed an agreement with Touch Meccanica for the first-of-its-kind renewable energy collaboration in Malaysia. They will hold 55% and 45% interest respectively in a special purpose vehicle called Touch Makmur Hidro Sdn Bhd.
The project is slated for completion in early 2020 and financing will be mainly through bank borrowings. Construction is to start in the middle of next year.
"The uniqueness of this renewable energy initiative is that it will utilise the calm waters of the Pahang River as an alternative source to generate electricity," said Makmur Hidro chairman Tan Sri Mohd Anwar Mohd Nor.
The event was witnessed by Pahang Crown Prince Tengku Abdullah Sultan Ahmad Shah and state government officials.
Touch Meccanica CEO Tengku Abdul Aziz Tengku Ibrahim said a 21-year power purchase agreement with Tenaga Nasional Bhd will be signed within a year, pending financing from local and international financial institutions.
Touch Meccanica is the renewable energy arm of Touch Group Holdings Sdn Bhd, which is engaged in various businesses, such as telecommunication towers, property development, construction, plantations, to name a few.