CEO Morning Brief

Reservoir Link’s 51%-owned Unit Bags RM22m Subcontract Job for Solar Farm in Kulim

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Publish date: Thu, 18 Apr 2024, 11:03 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (April 17): Reservoir Link Energy Bhd’s 51%-owned subsidiary Founder Energy Sdn Bhd (FESB) has secured a RM22 million subcontract job for a 50-megawatt alternating current solar farm in Kulim, Kedah.

In a bourse filing, the energy-related services provider said that its unit had accepted a letter of award from JS Solar Sdn Bhd (JSSB), which is principally involved in providing engineering, procurement, construction and commissioning (EPCC) services for solar systems throughout Malaysia.

Under the subcontract, FESB will supply labour, hand tools, materials and the necessary machinery and equipment for the execution and completion of EPCC at the solar farm in Kulim, Kedah.

The works should commence on March 18, 2024, and are scheduled to be completed on March 31, 2025.

The subcontract is expected to positively contribute to Reservoir’s earnings and its subsidiaries for the financial year ending June 30, 2024 and throughout the contract period.

The subcontract also stipulates that if FESB fails to complete the works by the deadline or any extension granted by JSSB, FESB will be obligated to pay JSSB a daily liquidated damage fee of RM20,000, up to a maximum of 10% of the subcontract sum.

At Wednesday's noon break, shares in Reservoir were unchanged at 31 sen, giving the group a market capitalisation of RM98.22 million.

Notably, the Kulim solar EPCC project worth RM100 million was awarded in January by NUR Renewables Sdn Bhd to a consortium consisting of JSSB and Samaiden Group Bhd's wholly-owned Samaiden Sdn Bhd. NUR is the exclusive power utility firm for the Kulim Hi-Tech Park.

Source: TheEdge - 18 Apr 2024

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