BTM, SEPCO enter pact on waste incinerator in Malacca

PETALING JAYA: BTM Resources Bhd has entered into a heads of agreement (HoA) with SEPCO Electric Power Construction Corp for the award of an engineering, procurement, construction and commissioning with finance (EPC + F) contract.
In a filing with Bursa Malaysia today, the group said its subsidiary BTM Western Power Green Energy Sdn Bhd (BTMWP) entered into the HoA for the contract on an exclusive basis, which will be executed at a later stage.
The HoA follows a memorandum of understanding entered into in April 2017 by BTM and China Western Power International Pte Ltd and Sichuan No. 2 Electric Power Construction Co (Sichuan Power) in Chengdu, China, for the establishment of a RM435 million municipal solid waste to energy generation plant in Malacca.
Under the HoA, BTMWP intends to develop a waste incineration power plant project in Malacca with a daily processing capacity of not less than 1,000 tonnes. It is seeking a qualified EPC + F contractor that has the capacity and capability to carry out the project.
Aside from awarding the project to SEPCO via the EPC + F contract, BTMWP will be responsible for project development and investment, while SEPCO will cooperate with BTMWP to carry out the necessary preliminary work.
SEPCO will also be responsible for the project engineering, procurement, construction and commissioning general contracting and arrange and facilitate full financing for the project.
BTM said the HoA will serve as a platform for it to tap into the reputation, experience and standing of SEPCO in power generation projects while also diversifying its income stream and contribute to the future profitability of the group.