Reneuco Berhad via a consortium with Citaglobal Berhad has received and accepted a Letter of Intent from Malaysia Rail Link Sdn. Bhd. as the independent power producer for the ECRL project.
The consortium that won the tender bid will be for the development of green hybrid power supply, communication utility and information, and communication technology across the East Coast Rail Link project.
The LOI is a result of a successful bid tendered by Reneuco in May 2022 to MRL. Following the successful bid, Reneuco has agreed to collaborate with Citaglobal to enter into an exclusive partnership to form a 50:50 Consortium to collaborate on the proposal.
The LOI will not have any effect on the issued share capital and the shareholdings of the substantial shareholders of the Company. And is expected to contribute positively to the net assets, consolidated earnings, and earnings per share of the Company for the financial year ending 30 June 2023 to 30 June 2024
Datuk Mustakim Mat Nun, the Executive Chairman and major shareholder of Reneuco, said, “We have put a lot of effort in winning this bid amidst formidable competitors. This contract will showcase our ability and commitment with likeminded
partners to accelerate sustainability living and green mobility particularly along the ECRL alignment. We believe that with Reneuco’s and Citaglobal’s long-established track records in our respective industries, the Consortium is well positioned to leverage on our respective expertise to ensure the execution of this large-scale IPP project goes smoothly and successfully.”
The ECRL project is a 640km railway link connecting different parts of the east coast region with the west coast region in Malaysia. ECRL connects state capitals, major urban centres, industrials hubs, ports, airports, and tourism zones and it interchanges with existing railway line in Peninsular Malaysia. MRL, a wholly owned subsidiary of the Ministry of Finance of Malaysia, is developing the project and will operate it in a 50:50 joint venture with China Communications Construction
Company. The Ministry of Transport, through Agensi Pengangkutan Awam Darat (“APAD”), will supervise and regulate the project.
