JAG Bhd inks agreement to participate in Manjung solar power plant bid

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KUALA LUMPUR (Aug 6): Waste management service provider JAG Bhd has inked a lease agreement to participate in the bidding process for the [email protected] programme (Large Scale Solar) for a proposed capacity of up to 29MWac.

In a statement today, JAG said its unit JAG Renewable Energy Sdn Bhd (JRESB) had entered into an agreement with Perak-based construction and property development firm RH Silver Sdn Bhd (RHSSB) to lease 112 acres (45.32ha) of land in Manjung to bid for the project.

It said power plants under the [email protected] programme are expected to start operating by end-2023, with the development of each plant taking up to 18 months.

JRESB is to lease the land for 23 years, including a renewal term of 10 years or such other periods as may be mutually agreed upon by RHSSB and JRESB commencing immediately after the expiry of the lease term.

JAG chairperson and executive director Datin Stacey Tan Siew Ching said the agreement, which is a long-term concession from the commercial operation date, offers strong prospects for the overall growth of the group.

“This is part of our commitment to diversifying our earnings stream, with a view to enhance value in meaningful yet sustainable ways.

“We are currently making significant progress in working towards the tender process by developing and collating all necessary documents. We are positive we will be able to meet all the requirements and the submission deadline,” she said.

Tan said e-waste management will always be JAG's core business.

“There are vast opportunities in the industry as we expect this division to grow.

“However, this diversification is our way of expanding our income stream while mitigating our reliance on commodity prices and exchange rates, which fluctuate according to the market,” she said.

At the midday break, JAG's share price was flat at eight sen, valuing it at RM145.49 million.