KUALA LUMPUR (Dec 21): A 50:50 joint venture consortium between Reneuco Bhd (formerly known as KPower Bhd) and Citaglobal Bhd (formerly known as WZ Satu Bhd) has won a tender to develop an independent power producer (IPP) project for the East Coast Rail Link (ECRL) network.

The consortium, which accepted a letter of intent from Malaysia Rail Link Sdn Bhd (MRL), will undertake the planning, design, financing, development, construction, installation, completion, commissioning and operation of the project, said Reneuco in a statement.

The proposal submitted by the consortium involves the supply of renewable power to commercial or industrial parks along the ECRL's 640-kilometre alignment.

"This award will be subject to the execution of a formal contract agreement between the consortium and MRL, which will be finalised in due course," added Reneuco.

No estimation was given on the project's cost.

"This contract will showcase our ability and commitment with like-minded partners to accelerate sustainability living and green mobility particularly along the ECRL alignment," said Reneuco executive chairman and major shareholder Datuk Mustakim Mat Nun.

"We believe that with Reneuco's and Citaglobal's long-established track records in our respective industries, the consortium is well positioned to leverage on our respective expertise to ensure the execution of this large-scale IPP project goes smoothly and successfully," he added.

Share price of Reneuco, which has fallen 39% year-to-date (YTD), closed unchanged at 25.5 sen on Wednesday (Dec 21), giving the group a market capitalisation of RM138.41 million.

Share price of Citaglobal, which was Wednesday's most actively traded stock with 97.35 million shares transacted, closed 1.5 sen or 5.45% higher at 29 sen, valuing the group at RM544.57 million. The stock has gained 23% YTD.

https://www.theedgemarkets.com/article/reneucocitaglobal-consortium-wins-bid-develop-ipp-project-ecrl