Jentayu Sustainables Berhad is pleased to make two key announcements.
The first is that Project Oriole has achieved a major milestone in its approval process, as we have now received an Initial Letter of Notification (ILON) from the Energy Commission of Sabah (ECOS), representing the state government of Sabah. The ILON provides the key indicative commercial and technical terms for the project.
The second is that we have received a key approval with conditions from the Securities Commission regarding the acquisition of Telekosang Hydro (40MW) and Jentayu Solar (5.99MW) assets, which is a major milestone towards the Group transforming into a renewable energy player.
Project Oriole
Project Oriole is a RM 2.8 billion 170 MW run-of-river hydropower plant that will be located in Sipitang Sabah. It is being developed in line with the Sabah Energy Road Map and Master Plan (RAMP) 2040, which was published by the Sabah State Government in September 2023, and will play a significant role in meeting the current challenges surrounding Sabah’s electricity supply.
Procedurally, the ILON follows the agreement in principle by the Sabah State Government as communicated in the Letter of Intent dated 7th of October, 2022.
Securing this ILON is an important step in the overall approval process because it indicates that the Cabinet of the Sabah State Government has agreed to set the key terms and conditions of the Initial Technical and Commercial Terms for Project Oriole.
Now that it has been issued, the next steps will involve negotiations with the Engineering, Procurement, Construction, and Commissioning (EPCC) contractor for the design and development of Project Oriole. We will also begin closer collaboration with our financial partners and financiers to progress towards achieving financial close for this project, and mandate our financial advisors as necessary.
Moving forward, we will work closely with ECOS to finalize the energy tariff rate and other key technical parameters of the project in an accelerated manner. This is in keeping with Sabah Chief Minister Datuk Seri Panglima Hajiji Noor’s call in January 2024 for renewable energy projects that are in line with the state’s master plan to be fast tracked to solve Sabah’s energy supply problems.
Acquisition of Assets
We are also pleased to announce that our application to the Securities Commission regarding the proposed acquisition of hydro assets, junior bonds, and solar assets has been approved under Section 214(1) of the Capital Markets and Services Act 2007, subject to terms and conditions.
This development marks another achievement of a major milestone in our company’s journey to becoming a major renewable energy player.
The approval with conditions by the Securities Commission paves the way for the Group to secure shareholder’s approval, which we will seek to obtain via an Extraordinary General Meeting.
The two hydro assets are Telekosang Hydro One, and Telekosang Hydro Two – two run-of-river hydropower plants which are located in Tenom, Sabah with a joint capacity of 40 MWs. These are the largest privately owned run-of-river hydropower plants in Malaysia.
The solar asset meanwhile is a 5.99 MW solar power plant located in Pokok Sena, Kedah.
Once completed, these acquisitions will represent a major enhancement of Jentayu Sustainables Berhad’s financial standing, completing our turnaround process, and putting us on a solid road towards profitability.
These two developments are the culmination of many years of planning and work, and we are greatly encouraged to see this major progress towards our targets.
Our ultimate goal is to provide the best possible value for our shareholders, and to continue making significant, meaningful contributions to the renewable energy sector in Sabah, Malaysia, and the region.
Datuk Haji Beroz Nikmal Mirdin
Executive Chairman
Jentayu Sustainables Berhad
