Jentayu Sustainables Berhad has announced that Project Oriole has progressed further in its approval process as they have now received an Initial Letter of Notification (ILON) from the Energy Commission of Sabah (ECOS), representing the state government of Sabah while they have also received a key approval with conditions from the Securities Commission regarding the acquisition of Telekosang Hydro (40MW) and Jentayu Solar (5.99MW) assets.
Project Oriole
Project Oriole is a RM 2.8 billion 170 MW run-of-river hydropower plant that will be located in Sipitang Sabah. It is being developed in line with the Sabah Energy Road Map and Master Plan (RAMP) 2040, which was published by the Sabah State Government in September 2023, and will play a significant role in meeting the current challenges surrounding Sabah’s electricity supply.
Procedurally, the ILON follows the agreement in principle by the Sabah State Government as communicated in the Letter of Intent dated 7th of October, 2022.
Now that it has been issued, the next steps will involve negotiations with the Engineering, Procurement, Construction, and Commissioning (EPCC) contractor for the design and development of Project Oriole. We will also begin closer collaboration with our financial partners and financiers to progress towards achieving financial close for this project, and mandate our financial advisors as necessary.
The company is working closely with ECOS to finalize the energy tariff rate and other key technical parameters of the project in an accelerated manner. This is in keeping with Sabah Chief Minister Datuk Seri Panglima Hajiji Noor’s call in January 2024 for renewable energy projects that are in line with the state’s master plan to be fast-tracked to solve Sabah’s energy supply problems.
Acquisition of Assets
The approval with conditions by the Securities Commission paves the way for the Group to secure shareholder’s approval, which the company will seek to obtain via an Extraordinary General Meeting.
The two hydro assets are Telekosang Hydro One, and Telekosang Hydro Two – two run-of-river hydropower plants which are located in Tenom, Sabah with a joint capacity of 40 MW. These are the largest privately owned run-of-river hydropower plants in Malaysia.
The solar asset meanwhile is a 5.99 MW solar power plant located in Pokok Sena, Kedah.
Once completed, these acquisitions will represent a major enhancement of Jentayu Sustainable Berhad’s financial standing, completing our turnaround process, and putting us on a solid road toward profitability.
“These two developments are the culmination of many years of planning and work, and we are greatly encouraged to see this major progress towards our targets. Our ultimate goal is to provide the best possible value for our shareholders, and to continue making significant, meaningful contributions to the renewable energy sector in Sabah, Malaysia, and the region,” stated Jentayu Sustainable Berhad in a media statement.
