KUALA LUMPUR: A consortium between Reneuco Bhd (formerly known as KPower Bhd) and Citaglobal Bhd (formerly known as WZ Satu Bhd) has bagged a tender to develop an independent power producer (IPP) project for the East Coast Rail Link (ECRL) network.
In a statement yesterday, Reneuco said the consortium has received and accepted a Letter of Intent (LoI) from Malaysia Rail Link Sdn Bhd (MRL) to undertake the planning, design, financing, development, construction, installation, completion, commissioning and operation of the project.
The LoI results from a successful bid tendered by Reneuco in May 2022 to MRL.
Following the successful bid, Reneuco said it has agreed to collaborate with Citaglobal to enter into an exclusive partnership to form a 50:50 consortium to collaborate on the proposal.
Reneuco executive chairman and major shareholder Datuk Mustakim Mat Nun said the company had put a lot of effort into winning this bid amidst formidable competitors.
"This contract will showcase our ability and commitment with like-minded partners to accelerate sustainable living and green mobility, particularly along the ECRL alignment.
"We believe that with Reneuco's and Citaglobal's long-established track records in our respective industries, the consortium is well positioned to leverage our respective expertise to ensure the execution of this large-scale IPP project goes smoothly and successfully," he said.
The ECRL project is a 640-kilometre railway link connecting different parts of the east coast region with the west coast region in Malaysia.
ECRL connects state capitals, major urban centres, industrial hubs, ports, airports, and tourism zones and interchanges with the existing railway lines in Peninsular Malaysia.
MRL, a wholly owned subsidiary of the Ministry of Finance of Malaysia, is developing the project and will operate it in a 50:50 joint venture with China Communications Construction Company.
The Ministry of Transport, through Agensi Pengangkutan Awam Darat (APAD), will supervise and regulate the project.
The ECRL project is poised to help boost Malaysia's economy and is also part of the East Coast Economic Region Masterplan to achieve equitable growth and development between the east and west of Malaysia.