KUALA LUMPUR (Aug 7): Vizione Holdings Bhd’s unit Vizione Construction Sdn Bhd has secured an RM90.03 million contract from SDF Hydro Sdn Bhd for a hydropower project in Kedah.
The contract came after Vizione Energy Sdn Bhd, another subsidiary of the group, signed a deal to acquire 150,085 shares representing a 75% stake in Tunjang Tenaga Sdn Bhd for RM150,058, the group said in a bourse filing today.
Tunjang Tenaga holds an 80% equity interest in SDF Hydro, while the remaining 20% stake is held by Menteri Besar Inc Kedah.
“[The contract] from SDF Hydro was for the proposed design, construction, testing and commissioning of a 9.6 MW installed capacity small hydro at the Pedu dam in Padang Terap.
“This renewable energy project will further enlarge the group’s order book. Together, the acquisition and the awarded contract are expected to provide a steady stream of revenue for the group over the next 25 financial years,” it said.
According to the group, SDF Hydro had on Dec 24, 2019 received feed-in approval from the Sustainable Energy Development Authority to operate the Pedu dam for 21 years from the feed-in-tariff commencement date.
It said construction works for the project will kick off after the signing of the Registration of Renewable Energy Power Purchase Agreement (REPPA) and financial close.
The project is expected to be completed for commencement by Dec 24, 2024, it noted.
“Barring any unforeseen circumstances, the acquisition is expected to contribute positively to the earnings and earnings per share of the group for a period of 21 years following the completion of the construction and commissioning of the small hydro dam.
“The total revenue of the small hydropower dam is expected to be in the region of RM245 million.
“Barring any unforeseen circumstances, the awarded contract is expected to contribute positively to the earnings and earnings per share of the group for the next four financial years as the earnings and attributable profits would be realised in stages over the tenure of the contract,” it added.