KUALA LUMPUR (April 17): BTM Resources Bhd is planning to collaborate with two Chinese companies, namely the China Western Power International Pte Ltd and Sichuan No 2 Electric Power Construction Company (Sichuan Power), to establish a RM435 million municipal solid waste-to-energy (WTE) generation plant in Melaka.

In a stock exchange filing today, BTM said it inked a Memorandum of Understanding with China Western Power and Sichuan Power last Friday (April 14), which spells out the intentions of all parties involved in the project.

The WTE plant will have a capacity of no less than 1,000 tonnes/day, it said.

China Western Power is involved in the business of investment, engineering, business and management services, whereas Sichuan Power has extensive experience in the development, investment, construction and operation of renewable energy projects, it noted.

Under the MoU, all three parties will jointly invest in securing the power generation project via a special purpose vehicle (SPV).

The estimated total investment for the project is RM435 million, it said.

China Power International and Sichuan Power will procure the entire funding cost for the engineering, procurement, construction and commissioning (EPCC) of the project, and wholly fund the technology development cost related to it, BTM said.

“The MoU and collaboration contemplated therein will serve as a platform for the company to tap into the reputation, experience and standing of Sichuan Power in power generation projects. This will also diversify the income stream and contribute to the profitability of BTM Group in the future,” it added.

BTM’s share price closed 6.06% higher at 35 sen today, valuing the group at RM43.86 million.