Citaglobal Bhd has announced that it will lead the ‘Citaglobal Reneuco ECRL Energy Solution Sdn Bhd’ consortium, with a 60:40 shareholding for the East Coast Railway Link (ECRL) Independent power producer (IPP) project.
The group said the consortium company is finalising the contract award of the ECRL IPP project with Malaysia Rail Link Sdn Bhd (MRL). MRL is the owner of the ECRL project.
In the first announcement of this consortium development on Dec 21 last year, Citaglobal via a consortium with Reneuco Bhd (formerly known as KPower Bhd) had been jointly awarded a Letter of Intent to become the independent power producer (IPP) for the ECRL IPP Project.
Back then, this was a 50:50 joint venture consortium.
This award took place following a RFQ from MRL for the development of an independent and renewable power producer project for the ECRL project.
The parties have now formalised their consortium agreement with Reneuco via a new special purpose vehicle ‘Citaglobal Reneuco ECRL Energy Solution Sdn Bhd’ with the new shareholding structure.
The initial share capital of this consortium company shall be RM500,000, where Citaglobal shall contribute RM300,000 (60%) and Reneuco shall contribute RM200,000 (40%) respectively.
The ECRL Project is a 665km railway link connecting different parts of the east coast region with the west coast region in Malaysia.
