Zecon earmarks 3,000 acres for green energy - MIDA | Malaysian Investment Development Authority
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Zecon earmarks 3,000 acres for green energy

Zecon earmarks 3,000 acres for green energy

06 May 2024

Zecon Bhd has earmarked a 3,000-acre landbank under its Kota Petra Masterplan to lead potential solar farms and green energy-related development, according to group managing director Datuk Zainal Abidin Ahmad.

He said the company is currently in talks with several agencies and technology companies, including Huawei Technologies, on potential solar projects in Sarawak and Sabah.

Last August, Zecon inked a memorandum of understanding (MoU) with Neuto Energy Sdn Bhd, a renewable energy technology firm, to establish a strategic alliance and collaboration for the development of large-scale solar photovoltaic (PV) projects.

To provide strategic connection to the 3,000-acre landbank, which is the site of the Kota Petra Masterplan, Zainal said two bridges across Sungai Santubong and Sungai Serai would be built.

The construction of the proposed Sungai Santubong Bridge has begun with the piling works after the contractor took possession of the site recently, while the Sungai Serai Bridge project will commence later this year, he added in the company’s 2023 annual report.

Sungai Santubong Bridge is a 280m three-lane dual carriageway concrete bridge with seven spans.

Sungai Serai Bridge, meanwhile, is a 150m two-lane dual carriageway concrete bridge with five spans, with navigational clearance heights of 14.6m and six m, respectively.

“We expect to complete the construction of both bridges by the middle of 2026,” said Zainal.

He said for the Kota Petra Masterplan, also in place are plans to collaborate with experts and agencies for digital transformation projects, including technology parks and data centres, which are some of the high-impact industries in line with the Sarawak government’s aspirations.

“The Sarawak government is ambitious about its digital future spearheaded by the Sarawak Post Covid-19 Development Strategy 2030, which aims to make the state a leading digital economy and thriving society by 2030 driven by data and innovation.

“Our resources will be aligned and we strive to play a pivotal role as landowner, developer and contractor to support the Sarawak government in achieving its goals.”

On March 15, 2024, Zainal said Zecon and Sarawak Digital Economy Corp Bhd signed an MoU to collaborate and explore the development of an integrated urban development and industries, as depicted in the Kota Petra Masterplan.

It includes an aerotropolis, logistics, industrial and technology parks, green energy industry and many other industries together with an integrated smart city eco-system incorporating digital infrastructure and smart technologies.

“The group’s Kota Petra Masterplan is imminent and with that we anticipate a very active and exciting 2024.

“The outlook for the group remains very positive and the timing is right for the group to strengthen its position by assuring that all the developments, infrastructure and green energy projects are going ahead as planned,” he added.

Zainal said the financing facilities amounting to RM815.94mil secured by Zecon group from Bank Pembangunan Malaysia Bhd (BPMB) in February 2024 is timely to boost the group’s operations, primarily the up-coming development projects.

BPMB’s Tawarruq Asset Financing Facilities consists of RM616.94mil for Zecon Medicare Sdn Bhd and RM235mil for ServeCo Sdn Bhd (an asset and facility management company under the group).

Both facilities have a tenure of up to 20 years from the date of the first drawdown.

“These are much-needed facilities for the group.

“The proceeds will be utilised primarily to fully settle the group’s existing facilities with the respective financial institutions and any approved balance will be used for working capital.”

Zecon Medicare is the concessionaire for the 243-bed Universiti Kebangsaan Malaysia Children’s Specialist Hospital in Bandar Tun Razak, Cheras, Selangor, under the “build, lease, maintain and transfer” model.

Zecon Medicare is a 51%-owned subsidiary of Zecon while the State Financial Secretary Sarawak owns the remaining 49% equity interest.

Zainal said ServeCo secured a landmark RM1.15bil, 25.5-year contract (concession started on Jan 1, 2021) to deliver comprehensive facility management services for the hospital.

The contract also includes providing services to the nearby 54-room Zecon Hotel.

Source: The Star