KUALA LUMPUR (Dec 23): Citaglobal Bhd (KL:CITAGLB) said its consortium has secured Tenaga Nasional Bhd (KL:TENAGA) as the long-term off-taker for a 200-megawatt (MW) large-scale solar photovoltaic project in Pahang.

In a filing with Bursa Malaysia, the group said Chereh Solar Sdn Bhd (CSSB), a special purpose vehicle (SPV) established by the consortium, signed a 21-year power purchase agreement (PPA) with Tenaga on Dec 17 for the sale of electricity generated by the project.

The development follows the Energy Commission’s decision on Sept 2 to shortlist a consortium comprising Abu Dhabi Future Energy Company PJSC (Masdar), Citaglobal Renewable Energy Sdn Bhd and TIZA Global Sdn Bhd for the project at Chereh Dam in Kuantan, Pahang.

CSSB was incorporated on Oct 9 specifically to undertake the project. Masdar holds a 49% stake in the SPV, followed by Citaglobal Renewable Energy with 30%, and TIZA Global with 21%.

Under the PPA, Tenaga will purchase electricity generated by the project for 21 years from the commercial operation date, which is targeted for March 2028. The project is expected to contribute positively to Citaglobal’s earnings once operations commence.

TIZA Global, a consortium partner, is a major shareholder of Citaglobal with a 29.39% direct stake and a 1.42% indirect stake, according to the group’s annual report. 

Citaglobal’s executive chairman and president Tan Sri Mohamad Norza Zakaria is also the sole director and sole shareholder of TIZA Global.

Shares of Citaglobal fell 1.5 sen or 1.67% to 88.5 sen at Tuesday’s noon break, valuing the group at RM374.42 million.