Citaglobal inks RM15bil deal with Chinese firm - MIDA | Malaysian Investment Development Authority
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Citaglobal inks RM15bil deal with Chinese firm

Citaglobal inks RM15bil deal with Chinese firm

19 Sep 2023

Chinese waste treatment conglomerate Shanghai SUS Environment Co Ltd is looking to inject RM15bil of foreign direct investment (FDI) into the economy via a collaboration to establish a waste-to-energy (WtE) plant in the country.

It was reported that Malaysian civil engineering group, Citaglobal Bhd, had entered into a memorandum of understanding (MoU) with SUS, which outlines the intention of the parties to potentially collaborate on developing WtE power plants in Malaysia.

The agreement was signed during the 20th China-Asean Expo and China-Asean Business and Investment Summit in Nanning, China, and was witnessed by Prime Minister Datuk Seri Anwar Ibrahim.

In a statement yesterday, Citaglobal said the plan is to divert all waste from unsustainable landfills to WtE plants and holistically resolve all waste disposal problems in Malaysia.

The group said it will assume a leading role in the project development of the WtE project in Malaysia, while SUS will be responsible for financing, building and operating the proposed projects.

“WtE systems not only provide a high value source of renewable energy, but more importantly, its ability to convert waste into ash can significantly reduce the volume of waste that ends up in landfills.

“We see the development of WtE systems as an overall win-win situation for Malaysia.

“Besides complementing fossil fuel-based power sources, WtE systems generate renewable energy, reduce landfill requirements and produce revenue for local municipalities and governments,” said Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria.

SUS chief executive officer Cindy Li Haiyan said the cooperation with Citaglobal will help to “leapfrog” the group’s investment in the Malaysia WtE market.

“With SUS’ strong extensive track record, we are confident in delivering a modern, clean and efficient WtE plant for Malaysians,” she said.

“In Malaysia, 38,000 tonnes of solid waste are being collected daily and being dumped at landfills that occupy 150 acres of land yearly.

“The Malaysian government has acknowledged this pressing need and has been planning on implementing one WtE plant in every state.

“Respectfully, SUS together with our partner Hitachi Zosen Corp, has successfully delivered 1,400 WtE plants globally. We look forward to injecting RM15bil of FDI into the Malaysian economy for this purpose,” said Li.

The MoU is effective immediately from its date of execution and will subsist until it is terminated. The partnership is in line with meeting Malaysia’s renewable energy capacity mix target from 40% in 2035 to 70% by 2050, as announced in the National Energy Transition Roadmap.

Source: The Star