KUALA LUMPUR (Aug 10): Makmur Hidro Sdn Bhd has inked a shareholder agreement with Touch Meccanica Sdn Bhd to jointly undertake a 30MW mini hydro project at Lubuk Palm, Maran, Pahang, worth RM350 million.

Under the agreement, a special purpose vehicle (SPV) called Touch Makmur Hidro Sdn Bhd will be set up to spearhead the development and implementation of the low head run-of-river mini hydro project, the first of its kind in Malaysia.

Makmur Hidro will control 55% equity stake in the SPV, while Touch Meccanica will hold the remainder 45%. Hence, the cost to be injected by both parties will be according to their respective stakeholdings.

The project is scheduled to begin construction in mid-2017 and shall commence operation in 2020.

Makmur Hidro chairman Tan Sri Setia Mohd Anwar Mohd Nor signed the agreement with Touch Meccanica chief executive officer Tengku Datuk Abdul Aziz Tengku Ibrahim.

It was witnessed by the Pahang Regent, Tengku Abdullah Al-Haj Ibni Sultan Haii Ahmad Shah Al-Musta'in Billah.

"The uniqueness of this renewable energy initiative is that it will utilise the calm waters of the Pahang River as an alternative source to generate electricity," said Mohd Anwar.

He said this project will have a positive impact as it will help the area prosper and drive the socioeconomic activities of the surrounding vicinity.

Makmur Hidro is an associated company of Green & Smart Holdings Plc, a London Stock Exchange listed entity.

"This is a very exciting time for us, as we have finally identified the best partners to work with," said Abdul Aziz.

'I have confidence that this will inspire more joint initiatives in the future, particularly in the clean and green sector," he added.