KUALA LUMPUR (July 25): JAKS Resources Bhd (KL:JAKS) said it has signed a memorandum of understanding (MOU) with a subsidiary of TDM Bhd (KL:TDM) to collaborate on a land lease as part of its bid for the fifth Large Scale Solar (LSS5) programme.
The construction and power utilities group said its wholly-owned unit, JAKS Solar Power Holdings Sdn Bhd, signed the MOU with TDM's 70%-owned subsidiary, TDM-YT Plantation Sdn Bhd, for the proposed lease of land in the Merang sub-district in Setiu, Terengganu.
The MOU outlines JAKS Solar Power and TDM-YT Plantation's plan to conduct feasibility studies for using the land for the LSS5 project and to negotiate the terms of the lease agreement.
"The MOU is a non-binding and non-exclusive agreement. It shall be submitted by JAKS Solar Power as part of the tender document for the LSS5 project to demonstrate intent and capability to enter into the proposed lease agreement with TDM-YT Plantation," said JAKS in an exchange filing on Thursday.
On July 12, JAKS announced that JAKS Solar Power had partnered with Shanghai-based China Power Engineering Consulting Group International Engineering Co Ltd (CPECC INT'L) to bid for the development of solar photovoltaic (PV) plants with a maximum aggregate capacity of 500 megawatts of alternating current (MWac), under the LSS5 programme.
CPECC INT'L is a subsidiary of the power engineering integrative service provider China Power Engineering Consulting Group Co Ltd (CPECC).
In a statement on Thursday, JAKS chief executive officer Andy Ang Lam Poah welcomed the collaboration with TDM-YT Plantation in the renewable energy sector, which will enable the group to secure a land lease for the LSS5 submission.
Ang said the group's partnership with CPECC INT'L has the potential to boost renewable energy capacity in Terengganu and benefit the local community.
"Leveraging our robust capabilities and strong track record in renewable energy projects, we are confident in the success of this initiative," he said.
Shares in JAKS settled half a sen, or 2.86%, higher at 18 sen on Thursday, valuing the group at RM469.23 million. TDM gained half a sen, or 2.08%, to 24 sen, giving the company a market capitalisation of RM413.66 million.