KUALA LUMPUR (March 29): Jentayu Sustainables Bhd announced that the RM2.8 billion Project Oriole has received the initial letter of notification from the Energy Commission of Sabah (ECOS).  

According to Jentayu, this indicates the Sabah state government's agreement to the key terms and conditions of the initial technical and commercial terms for the 170-megawatt (MW) run-of-river hydropower plant.

"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," said Jentayu executive chairman Datuk Beroz Nikmal Mirdin in a statement on Friday.

Beroz added that the group will also work closely with financial partners to secure funding, as well as collaborate with ECOS to swiftly finalise details like the energy tariff rate.

Project Oriole involves two run-of-the-river hydropower cascading schemes to be constructed along Sungai Malingan and Hulu Sungai Padas in Sipitang, Sabah, which will produce 170MW of power.

The project is part of Sabah's long-term plan to address its electricity needs outlined in the Sabah Energy Road Map and Master Plan (RAMP) 2040.

Jentayu secured a letter of intent from the Energy Ministry back in October 2022, allowing the group to continue developing Project Oriole.

The project was subsequently included as a confirmed project in the Plant Up Plan for Sabah released on Sept 19, 2023, outlining the development plan for future power-generating plants in Sabah.

The project is expected to be completed by December 2027.

Meanwhile, Beroz also announced that the group has received approval from the Securities Commission Malaysia regarding the acquisition of Telekosang Hydro (40MW) and Jentayu Solar (5.99MW) assets, including hydro assets, junior bonds, and one solar asset.

This paves the way for the group to seek shareholder approval through an extraordinary general meeting.

The proposed acquisition of hydro assets will give Jentayu control over the two run-of-river hydropower plants with a joint capacity of 40MW currently operated by Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd in Tenom, Sabah.

Meanwhile, the proposed acquisition of the solar asset entails acquiring Jentayu Solar Sdn Bhd, which currently operates a 5.99 MW of alternating current solar power plant located in Pokok Sena, Kedah.

The approval with conditions by the SC was in accordance with Section 214(1) of the Capital Markets and Services Act 2007.

Once these acquisitions are completed, Beroz said, they will greatly boost the group's financial strength, marking a turnaround and setting the group on a solid path towards profitability.

Shares in Jentayu were 1.5 sen or 1.51% higher at RM1.01 at the noon break, giving the group a market capitalisation of RM443.34 million.