PADANG BESAR — June 20, 2019: Local company Konsortium Beseri Jaya Sdn. Bhd. (KBJ) and Hanwha Energy Corp Singapore Pte. Ltd. have formed a joint venture called KBJ Hecmy which will invest over RM220 million to develop a 30-megawatt photovoltaic power plant at Kampung Perawah, Chuping.
KBJ Hecmy successfully bid for the package under the Energy Commission’s large scale solar programme.
Hanwha is investing US$10 million and is also relying on a loan of about US$50 million from OCBC Bank and Bangkok Bank, said Hanwha senior vice-president James Lee after the ground-breaking by Mentri Besar Datuk Seri Azlan Man here today.
Hanwha is a wholly-owned subsidiary of Hanwha Energy Corp. one of South Korea’s biggest business conglomerates.
Azlan said the project substantially advances the state government’s efforts to woo foreign investors to Perlis, in particular to the Chuping Valley Industrial Area (CVIA). Perlis now has four solar energy producers each with a capacity of one to seven MW.
He said the federal government had approved RM50 million under the 11th Malaysia Plan for basic infrastructure at CVIA this year while Tenaga Nasional Berhad has agreed to build a main intake substation in two years’ time.
The solar project is set to create 400 to 500 jobs during construction and will need hundreds of skilled and semi-skilled workers once operational.
A total of 397 landowners will be paid RM5,000 for each relong (0.71 acre) they lease, compared to the RM1,000 they get per relong from a single crop of rice a year.
KBJ director Datuk Dr. Hashini Hashim said KBJ Hecmy has signed a 21-year power purchase agreement with TNB from June next year but the project will only be implemented after agreement has been reached with the 397 landowners. — Bernama