KUALA LUMPUR (Jan 13): PUC Founder (MSC) Bhd (PUCF) said it is eyeing government-linked renewable energy (RE) projects as it aims to secure contracts via its joint venture (JV) with Malaysian Green Technology Corp (GreenTech).

At a signing ceremony today, PUCF inked a JV and shareholder agreement with GreenTech Malaysia Alliance (GTMA), a wholly-owned subsidiary of GreenTech, which will see GTMA subscribing for a 20% stake in the JV company (JV Co) PUC Founder Technology Sdn Bhd to bid for RE contracts in government or government-linked corporations.

PUCF will hold the remainder 80% equity stake in the JV Co.

"This JV with GTMA is a part of our expansion plans for our RE division, after getting our shareholders' approval to diversify into this segment. Through the JV Co, we will bid for RE projects such as solar, biogas and biomass-related projects," PUCF group managing director Cheong Chia Chieh told the press.

Asked if the JV Co will be securing any contracts soon, GreenTech chief financial officer Woon Foo Wen said the company aims to secure at least one contract this year.

"We definitely have a target. We will be seeking out new projects this year. Our focus will be mainly solar, biogas and biomass-related projects in Malaysia," said Woon.

PUCF had received its shareholders' nod to venture into RE at its extraordinary general meeting on Dec 29, 2015, as well as for a rights issue to fund its RE expansion plans.

The company currently has a 1MW solar photovoltaic plant in Sungai Petani, Kedah, which is expected to contribute to its revenue in the first quarter of 2016.

PUCF said the plant is already connected to the grid, and is currently undergoing final inspections by the Sustainable Energy Development Authority.

At 4.23pm, PUCF shares were unchanged at 10.5 sen, valuing it at RM111.9 million.

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