KUALA LUMPUR: Bina Puri Holdings Bhd is building its first power plant in Malaysia.
Bina Puri, in a stock exchange filing today, said its unit BP Energy Sdn Bhd had signed a power purchase agreement (PPA) for a large scale solar photovoltaic (PV) plant with Sabah Electricity Sdn Bhd (SESB).
The PPA allows BP Energy to design, construct, test, commission, own, operate and maintain a solar photovoltaic energy generating facility in Kunak, Sabah.
The facility has a capacity of 5.00 MWa.c for connection to SESB's medium voltage distribution network in Kunak.
"The PPA contractual term will be for 21 years from the commercial operation date scheduled on June 30, 2023."
Bina Puri added that the PPA was not expected to have any material impact on its earnings and net assets of the for the financial year ending June 30, 2022.
Group executive director Datuk Matthew Tee Kai Woon said Bina Puri was pleased to have finally signed the PPA after four years of receiving the letter of acceptance for the project from the Enedrgy Commission.
"Out of 10 companies that were awarded under the second Large-Scale Solar (LSS2) in Sabah, Bina Puri is the first company to sign the PPA with SESB.
"This marks an important milestone for the group as this is Bina Puri's first power project in Malaysia, following the successful listing of our power subsidiary in June 2017 at the Indonesia Stock Exchange," he said in a separate statement today.
He said Bina Puri would look forward to contributing to its own nation using renewable energy solutions which is in line with government's efforts to create a more sustainable and green future.
"We hope to secure more power projects in Malaysia especially in Sabah as we also have a strong presence in other sectors such as construction and property development," he added.
On June 5, 2017, Bina Puri's power unit, PT Megapower Makmur (MPOW), an independent power producer was listed on Indonesia Stock Exchange.
MPOW operates four diesel power plants with a capacity of 14.0 megawatts at four locations and a 4.2 megawatt mini-hydro plant at Sulawesi Selatan, Indonesia.
Bina Puri is the first non-government linked company listed on the Indonesia Stock Exchange.
Bina Puri has also supported green energy initiatives by installing solar panels along the Kuala Lumpur-Kuala Selangor Expressway to reduce energy costs under an arrangement with Tenaga Nasional Bhd.
The solar panels were mounted on useable rooftops and on designated land area with a combined capacity of 413.60kWp.