Vizione makes first foray into renewable energy
09 Aug 2020
Full-fledged integrated construction engineering group, Vizione Holdings Bhd’s wholly-owned subsidiary, Vizione Energy Sdn Bhd (VESB), has acquired a 75 per cent stake in Tunjang Tenaga Sdn Bhd (TTSB) for RM150,085.
In a statement today, Vizione said TTSB holds an 80 per cent stake in SDF Hydro Sdn Bhd (SDF) with the remaining stake held by the Menteri Besar Kedah Incorporated.
SDF had on Dec 24, 2019 received feed-in approval from the Sustainable Energy Development Authority (SEDA) to operate a small hydropower plant with an installed capacity of 9.6 megawatts (MW) at Pedu Dam, Kedah for a period of 21 years starting from the Feed-In-Tariff commencement date scheduled.
In another development, Vizione said its wholly-owned subsidiary, Vizione Construction Sdn Bhd, has secured its first renewable energy (RE) contract worth RM90 million from SDF for the proposed design, construction, testing, and commissioning of the 9.6MW small hydro dam at Pedu Dam.
The duration of the contract is 48 months, commencing on Aug 7, 2020, with expected completion slated to be on Aug 8, 2024.
Vizione managing director Datuk Ng Aun Hooi said: “The contract will contribute to our earnings over the next four financial years.
“Post completion of construction, we will also be operating the small hydropower dam for 21 years with total revenue estimated at RM245 million. This gives the group recurring income and will enhance our earnings visibility going forward.”
He said with this latest contract award, the group’s order book currently stands at about RM2 billion.
Ng said there are a lot of opportunities in the RE segment as Malaysia aims to increase this energy in its generation mix to 20 per cent by 2025 from 8.0 per cent in 2019, according to the Energy Commission.
“Riding on this growth, we have a target to secure clean energy projects worth up to RM1 billion over the next two to three years, be it on our own or in joint-venture with strategic partners. We believe our target is an achievable goal,” he added.