KUALA LUMPUR (Aug 11): Engineering firm Citaglobal Bhd (KL:CITAGLB) is acquiring a 70% stake in two hydropower projects in Perak for a total of RM15 million.

The acquisition will be carried out through Citaglobal’s wholly owned Citaglobal Renewable Energy Sdn Bhd, which will pay RM15 million for a 70% stake in Zeqna Corporation Sdn Bhd and a conditional RM1 acquisition for a 70% stake in Koridor Mentari Sdn Bhd, which is contingent on completion of the Zeqna acquisition.

The remaining 30% stakes in both companies will continue to be held by Perak Hydro Renewable Energy Corporation Sdn Bhd (PHREC), which has been granted water rights by the Perak state government for mini hydropower development.

Citaglobal stated that this strategic acquisition will allow the company to immediately generate revenue from the Slim Hydropower Plant, a functional brownfield asset in Slim, Perak. The Kampar Hydropower Plant project, which has secured all necessary state-level approvals, is also expected to generate significant returns on an accelerated timeline.

According to Citaglobal, the two hydropower assets are projected to generate up to RM19 million in recurring annual revenue under long-term Renewable Energy Power Purchase Agreements (Reppa) with Tenaga Nasional Bhd (KL:TNB), sustaining the company’s earnings base for years to come.

The Slim Hydropower Plant, in which Zeqna now holds 70%, is a 6MW brownfield asset that has been operational since July 2019. As for the Kampar Hydropower Plant, which Koridor Mentari is developing, it was granted a new Feed-in Approval (FiA) on July 25, 2025. This new FiA increases the project's approved capacity from 5.25MW to 6.0MW. It also sets a new tariff of 34 sen per kWh for the first 10 years of operation, followed by a tariff of 32.4 sen per kWh for the subsequent 11 years, as opposed to 24.99 sen per kWh under the previous FiA rate.

“The Slim Hydropower Plant will provide the company with an immediate source of recurring revenue, while the Kampar Hydropower Plant, benefitting from its newly approved capacity and tariff, promises to deliver exceptional long-term value. Together, they provide a well-balanced platform for scaling our clean energy portfolio, which includes solar, waste-to-energy and battery energy storage projects," said Citaglobal's executive chairman and president Tan Sri Mohamad Norza Zakaria.

On Monday, Citaglobal’s share price closed half a sen or 0.61% lower at 81 sen, giving the company a market capitalisation of RM345 million.