KUALA LUMPUR (Jan 28): A consortium led by wastewater engineering and construction firm Salcon Bhd (KL:SALCON) has been awarded the construction of a seven-megawatt (MW) solar energy generating facility in Sungai Siput, Perak.

Mentari Kamuning Sdn Bhd (MKSB), a 70%-owned unit of Energy Valley Sdn Bhd (EVSB), which is wholly-owned by Salcon, signed a new enhanced dispatch agreement (NEDA) with Tenaga Nasional Bhd (KL:TENAGA) on Monday for the construction of a facility with a commercial operation period of 21 years.

The remaining 30% stake in MKSB is held by KAB Smart Solar Energy Sdn Bhd, a wholly-owned subsidiary of Kinergy Advancement Bhd (KL:KAB).

“Pursuant to the agreement, MKSB will design, construct, own, operate and maintain an energy generating facility with a capacity of 7MW or MWac (if applicable) proposed to be located in Sungai Siput, Kuala Kangsar, Perak, to generate and supply energy to TNB under the NEDA scheme,” said Salcon in a bourse filing.

According to Salcon, the signing of the agreement will not have any material effect on the group’s net assets and earnings for the financial year ending Dec 31,2025.

“Salcon expects positive future earnings contributions from the Facility starting from its commercial operation date over a period of 21 years,” it added.

Salcon operates across several business segments, including engineering and construction, property development, trading and services, glove manufacturing, and concessions. For the financial year ended Dec 31, 2023 (FY2023), its engineering and construction segment — which provides end-to-end solutions for water and wastewater projects — accounted for 66% of the group’s revenue.

In October last year, the group exited the money lending business after its wholly-owned subsidiary, Kencana Kesuma Sdn Bhd, decided not to renew its moneylender's licence.

Inter-Pacific Capital Sdn Bhd, a wholly-owned unit of Berjaya Corp Bhd (KL:BJCORP), is Salcon’s largest shareholder with a 10.76% stake, according to AskEdge. Naga Muhibah Sdn Bhd, controlled by the group’s executive director Leong Kok Wah and his spouse Datin Goh Phaik Lynn is the second-largest shareholder with a 10% stake.

Shares in Salcon gained half a sen or 1.92% to 26.5 sen at Tuesday’s midday break, giving it a market capitalisation of RM269.1 million.