KUALA LUMPUR, Feb 21 — A special purpose vehicle jointly incorporated by Citaglobal Bhd and Reneuco Bhd named Citaglobal Reneuco Energy Solution Sdn Bhd (Crees) has accepted a conditional letter of award (CLOA) from Malaysia Rail Link Sdn Bhd (MRL).
The consortium will serve as the 30-year exclusive concessionaire to provide and supply electricity and renewable energy for the East Coast Rail Link (ECRL) network spanning over 665 kilometres from Kota Baru, Kelantan to Port Klang, Selangor, for both traction and non-traction, Citaglobal and Reneuco told Bursa Malaysia.
The companies noted that this concession includes the development and construction of transmission and interconnection facilities valued at RM600 million, which are expected to be completed and commissioned in stages from early to mid-2026.
Upon the expiry of the concession period, MRL has the absolute discretion to renew for an additional 30 years, provided the ECRL network remains in operation, they said.
Citaglobal said in its statement that the consortium is expected to develop and provide electricity and green energy of up to 100 megawatts (MW), aiming to achieve a 30 per cent mix of green energy from the total energy supply for the ECRL network.
It noted that this award is conditional upon the finalisation of a definitive agreement, which is to be executed no longer than three months from the date of the award letter, as well as approval from the relevant authorities for the consortium to distribute electricity to the ECRL network under the scheme governed by the public distribution license.
“This project marks the first time in Malaysia that a railway network is electrified under a scheme that defines supply area which allows both electricity and new energy to be supplied under the public distribution scheme,” it said.
Citaglobal’s executive chairman and president Tan Sri Mohamad Norza Zakaria said that the project, which is the first of its kind for a railway network, provides the ECRL network with secure, sufficient, reliable, and cost-competitive delivery of electricity and green energy.
This award will allow Citaglobal to expand its presence in the energy sector, particularly the renewable energy segment, and at the same time further diversify its revenue and earnings base to build recurrent income streams, he said.
“We are focused on delivering solutions for the overall success of the ECRL as a strategic national infrastructure project and wish to leverage this award to play our part in realising the Malaysian government’s vision to increase renewable energy share in the installed capacity mix to 70 per cent by 2050,” he said.
Meanwhile, Reneuco’s executive chairman Datuk Mustakim Mat Nun said in a separate statement that the award represents another significant step for the advancement of the ECRL project.
“Our goal is to ensure a secure, sufficient, reliable, and cost-competitive delivery of electricity and green energy to the ECRL network, and there is no perfect time than this for us to leverage our long-standing expertise in the green energy segment to make sure this happens.
“In the long term, we expect the concession will pave the way for our business expansion in the renewable energy and utilities segment as we further explore new business opportunities and long-term value in support of the government’s net zero carbon emission target by 2050,” he added.
Cress is a consortium of two companies comprising Citaglobal with a 60 per cent shareholding and Reneuco holding the remaining 40 per cent. — Bernama
