Business

Citaglobal-Reneuco consortium clinches IPP contract for ECRL

The former’s president Tan Sri Mohamad Norza Zakaria says deal won via competitive bidding exercise

Updated 3 years ago · Published on 21 Dec 2022 11:59PM

Citaglobal-Reneuco consortium clinches IPP contract for ECRL
The CRRC Zhuzhou CJ6-type EMU train proposed for the East Coast Rail Link project. When completed, the 640-km railway link will connect Peninsular Malaysia’s east coast to the Klang Valley. – Wikipedia pic, December 22, 2022

KUALA LUMPUR – Malaysia Rail Link Sdn Bhd (MRL) has given a letter of intent to joint-venture partners Citaglobal Bhd and Reneuco Bhd to be the independent power producer (IPP) for the East Coast Rail Link (ECRL) project.

In a filing with Bursa Malaysia today, Citaglobal said MRL intends to engage the 50:50 joint venture to plan, design, finance, develop, construct, install, complete, commission, and operate the ECRL IPP project.

MRL is a Finance Ministry entity to implement the ECRL. It is the owner of the ECRL project, the filing said.

MRL, in developing the ECRL, will operate it as a 50:50 joint venture with China Communications Construction Company. The Transport Ministry, via the Land Public Transport Agency, will supervise and regulate the project, the filing said.

The award is subject to the execution of a formal contract agreement to be entered into between Citaglobal and Reneuco with MRL in due course, Citaglobal said in a separate statement.

Citaglobal executive chairman and president and major shareholder Tan Sri Mohamad Norza Zakaria said in a statement that the contract was won via a competitive bidding exercise.

“Citaglobal will definitely do its part in executing and realising the ECRL IPP project together with our partner, Reneuco. Winning this contract aligns with Citaglobal’s business focus and vision, which is to become a major player in the renewable energy segment, and at the same time build a recurring income base for the company,” he said.

The 640-km ECRL connects the east coast to the Klang Valley on the west coast of Peninsular Malaysia.

“ECRL connects state capitals, major urban centres, industrial hubs, ports, airports, and tourism zones and it interchanges with the existing railway lines in Peninsular Malaysia,” the statement said. – Bernama, December 22, 2022

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