MBSB FINANCING SOLAR PLANT
Tie-up with Solar Management marks first foray into renewable energy generation
MALAYSIA Building Society Bhd (MBSB) will allocate up to RM247 million to partly finance the engineering, procurement, construction and commissioning of Solar Management (Seremban) Sdn Bhd’s solar farm project.
Its president and chief executive officer Datuk Seri Ahmad Zaini Othman said the fund would be an Islamic financing facility, comprising RM19 million of a performance guarantee-i under the Kafalah concept and RM228 million of term financing, with a sub-limit of RM137 million of a Letter of Credit under the Tawwaruq and Kafalah concepts, respectively.
“This partnership marks MBSB’s inaugural financing of a solar farm, bringing it closer to its sustainability objectives. The project is set to become one of the largest solar projects in Malaysia and we are honoured to be a part of it.
“Supporting carbon emission reduction initiatives such as this is a testament of our responsibility towards the environment and commitment to serve the nation and communities in a sustainable manner,” he said after signing the partnership agreement with Solar Management here yesterday.
Solar Management director Tee Cheng Hua said under the partnership, the company would design, construct, own, operate and maintain a large-scale solar 50 MWac photovoltaic energy generating facility.
The project, valued at RM285 million, is being built on a 80.94ha site in Rembau, Negri Sembilan, and expected to be completed by November 30 next year.
Solar Management has appointed Mattan Engineering Sdn Bhd, an engineering, procurement, construction and commissioning solution provider for renewable energy (RE), to undertake the designing, construction and operation works.
Mattan executive chairman, Levin Tan said to-date, the company has a combined total of 69 megawatts of RE projects completed.
Following the contract, Mattan has appointed China Machinery Engineering Corp (CMEC) to be its procurement arm to supply material and equipment for the project.
Tan said as per the appointment, CMEC would undertake the necessary package arrangements for the procurement and international transportation of the material and equipment, including mounting structures and solar panels.
“With nearly 40 years of continuous growth, CMEC has extensive experience in the international engineering contracting business, having completed multiple large-scale construction projects in sectors like power, telecommunications, transmission, airport and housing.
“Hence, we foresee a complementary working relationship which will enable both sides to leverage on our respective expertise, experience and resources to ensure this project is completed,” he said. Bernama