Jentayu Sustainables Bhd (JSB) is primed for the proposed acquisition of two companies running two hydropower plants, as it said it had satisfied a critical condition precedent necessary for it to acquire and inject the plants into JSB.
In a Bursa filing today (Dec 27), JSB said this is following a recent development where the run-of-river hydropower plant Telekosang Hydro 2 (TH2) in Sabah, with a capacity of 16 MW’s, has achieved Feed in Tariff Commencement Date (FiTCD) on Dec 25.
“TH2 has fully completed its development phase and now fully online and operating commercially to supply power to Sabah Electricity Sdn Bhd (SESB) as contracted.
Telekosang Hydro 1 (TH1) has a capacity of 24 MW’s, and achieved its FiTCD in February 2023.
“Now that both TH1 and TH2 have achieved their final and most important milestones, we have satisfied a critical condition precedent necessary for us to acquire and inject TH1 and TH2 into JSB.
“(This is) subject to final approval by shareholders and regulators, especially as this exercise involves related parties,” it added.
The group explained, for clarity, TH1 and TH2 were developed by the private companies Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd respectively – private companies which are run by parties related to JSB.
“We are currently in the process of acquiring these two private companies,” it said.
It said the upcoming acquisition of the two companies represents a major milestone in JSB’s plans to transform its business, strengthen its financial position, and further cement JSB’s position as a major player in the renewable energy sector.
JSB said the 40 MW Telekosang Hydro project as a whole (TH1 and TH2) is now successfully providing clean and reliable electricity at one of the lowest tariff rates in the whole of Sabah.
As per standard operating procedure, it said the relevant submissions to the Sustainable Energy Development Authority (SEDA) and SESB have been made, who will verify the test results and issue the appropriate certification in about 3 months.
“We are glad that this milestone will serve as one answer to Prime Minister Datuk Seri Anwar Ibrahim’s call on Dec 7 for power generating projects in Sabah to be expedited in light of Sabah’s urgent power needs.
“As a company with Sabahan roots, we are deeply committed to our mission to brighten up Sabah (#BrightenUpSabah). All our renewable energy projects in Sabah are designed to help ensure that all Sabahans will have access to affordable and reliable sources of electricity for generations to come,” it said.
JSB added: “The final major milestone for Telekosang Hydro is the culmination of many years of work on the part of the team that now runs JSB. We are committed to keep building upon our successful, proven track record.
“We believe this is proof of the company’s ability to deliver on our commitments to clients, shareholders, and investors as promised.”
Touching on Project Oriole, the group expressed its confidence that it will deliver yet another commercially successful plant to significantly contribute towards Sabah’s urgent power needs.
“Given the demonstrated success of TH1 and TH2, as well as the tried and tested formula we have developed in building hydropower plants in Sabah, with the same team (from the two hydropower plants), we are confident (of Project Oriole’s success),” it said.
Project Oriole is two run of the river hydropower cascading schemes to be constructed along Sungai Malingan and Hulu Sungai Padas in Sipitang, Sabah that will produce 170 MWs of power.
The project is estimated to cost RM 2.8 billion to develop and is expected to be completed by December 2027.
Project Oriole was presented by JSB to a meeting of The Planning and Implementation of Electricity Supply and Tariff Committee of Sabah (JPPPET – Jawatankuasa Perancangan dan Pelaksanaan Pembekalan Elektrik dan Tarif), and key leaders on Aug 25, 2022.
In October 2022, the group then secured a letter of intent which allowed JSB to continue development. The project was subsequently included as a confirmed project in the Plant Up Plan for Sabah that was released on Sept 19.
