KUALA LUMPUR (Aug 19): OSK Holdings Bhd is partnering Japan’s Marubeni Corp to jointly bid for a large scale solar photovolatic plant in Peninsular Malaysia, under the government’s third cycle of the scheme (LSS3).
OSK said the two parties signed a term sheet today, under which OSK holds a 51% participating interest and Marubeni the balance 49%, to jointly develop, operate and maintain the LSS3 project.
Marubeni, based in Tokyo, is one of the world’s largest independent power producers, OSK said in a filing with Bursa Malaysia.
It owns and operates a global portfolio of around 41,041 megawatts (mW), and has acted as engineering, procurement and construction (EPC) contractor in completing 110,174 mW of power projects.
OSK added that the joint development will enable both companies to share experience and expertise in various areas, including the EPC works of the LSS3 project.
In February, Putrajaya called for bids for an estimated RM2 billion worth of projects under LSS3 to increase electricity generation from renewable energy.
The outcome of the exercise, which was scheduled to end in mid-August, is expected by year-end, according to Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin.
Without disclosing further specifics, Yeo had said in July that the government will be calling out for more bids for large-scale solar power projects by the end of next year.
Shares of OSK Holdings closed half a sen or 0.55% higher at 91 sen today, for a market capitalisation of RM1.89 billion.