Citaglobal Bhd and TIZA Global Sdn Bhd as a consortium, have executed a 40:60 joint development agreement (JDA) with leading clean energy player Abu Dhabi Future Energy Company PJSC (Masdar) for a 2-gigawatt (2GW) solar farm project in the state of Pahang for US$2 billion (RM9.75 billion).
Citaglobal said it has received full support from the State Government of Pahang to develop and execute renewable energy projects in Pahang, particularly for the approval of land.
Meanwhile, TIZA Global is a major shareholder of Citaglobal. Citaglobal Executive Chairman and President Tan Sri Mohamad Norza Zakaria is a major shareholder of Citaglobal, as well as the sole shareholder and sole director of TIZA Global.
An investment vehicle of the government of Abu Dhabi, Masdar is a clean energy powerhouse with a global footprint. Masdar has an active presence in more than 40 countries across six continents and has invested in projects with a combined value of over US$30 billion and a total capacity of over 20 gigawatts (20GW). Its shareholders include Abu Dhabi National Oil Company (ADNOC), the Mubadala Investment Company, and Abu Dhabi National Energy Company PJSC (TAQA).
Project 2GW involves the proposed development of up to 2GW of renewable energy in the state of Pahang, and will see the construction of ground-mounted solar arrays, floating solar farms and battery energy storage systems (BESS) across multiple sites in suitable land, dams, lakes and offshore perimeters across Pahang. The project will be developed in multiple phases, over a 5-year period.
At this stage, Citaglobal and TIZA will hold a 40% participating equity interest in Project 2GW, with the remaining 60% held by Masdar. Each participating entity will be responsible for funding its respective share of the project development cost in proportion to its stake. The initial development cost of Project 2GW will be determined at a later date.
Citaglobal will fund the subscription of its portion of the initial share capital through proceeds from its private placement exercise completed earlier, or internally generated funds.
To recap on July 27, 2023, Citaglobal and Masdar signed an MOU that served as an initial agreement to jointly develop clean energy projects in Pahang.
