This article first appeared in The Edge Financial Daily on April 18, 2017

KUALA LUMPUR: BTM Resources Bhd is teaming up with China Western Power International Pte Ltd and Sichuan No 2 Electric Power Construction Co (Sichuan Power) to establish a RM435 million municipal solid waste-to-energy (WTE) generation plant in Melaka.

In a filing with Bursa Malaysia yesterday, BTM said it inked a memorandum of understanding (MoU) with China Western Power and Sichuan Power last Friday, which spells out the intentions of all parties involved in the project.

The WTE plant, which is subject to the approval of relevant authorities, will have a capacity of no less than 1,000 tonnes per day, it said.

Under the MoU, all three parties will jointly invest in securing the power generation project via a special purpose vehicle; RM435 million is the estimated investment for the project, it said.

China Western Power and Sichuan Power will procure the entire funding cost for the engineering, procurement, construction and commissioning 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.