KUCHING: Zecon Bhd is teaming up with two foreign companies for potential development of an integrated energy complex (IEC) in the Kota Petra Green Technology Park (KPGTP) here.
Zecon has entered into a memorandum of understanding (MoU) with Edra Power Holdings Sdn Bhd (EPH) and Neutrinos Engineering Pte Ltd (NEPI) for the IEC project, which will comprise a 200MWac solar photovoltaic plant, and a 500MW combined cycle gas turbine power plant, Zecon, the master developer of the KPGTP, said in a filing with Bursa Malaysia.
EPH is an international independent power producer with an existing operating portfolio of eight power and desalination plants across Malaysia, Bangladesh, United Arab Emirates (UAE) and Pakistan, with a total capacity of 7,684MW and an effective capacity of 5,042MW.
Singapore-based NEPL is an energy company specialising in the development, engineering, procurement, construction and commissioning of renewable energy infrastructure and operations management, with a focus on clean energy solutions.
“The parties have agreed to cooperate and work together with each other to develop the IEC project and will finalise a detailed heads of terms at a later stage to clearly define the scope and responsibilities of each party, amongst others, the followings:
- (a) procuring and/or conducting the necessary technical studies for the development of the project such as preliminary feasibility study and power system study;
- (b) securing the necessary permits, licences, land, rights of way, access and regulatory approvals required for the project;
- (c) negotiating and procuring the electricity off-take agreements and fuel supply agreements for the project;
- (d) procuring the engineerging, procurement, construction and commissioning (EPCC) contractor as well as the operation and maintenance team for the project;
- (e) arranging and securing the project finance required for the project, including but not limited to negotiating the financing documents with potential financiers, and
- (f) the MoU shall become effective on the date of execution and unless earlier terminated or superseded by a definitive agreement, the MoU shall remain in force for a period of two years,” said Zecon.
The Sarawak government approved KPGTP in November 2024,and designated it as a special economic zone, waiving foreign ownership restrictions.
Spanning 3,000 acres near Demak Laut Industrial Estate and Senari Port along Jalan Bako, the KPGTP will focus on high-growth sectors, including biotech, agritech, spacetech, smart manufacturing, AI data centres and green technology.
According to Zecon group managing director Datuk Zainal Abidin Ahmad, the KPGTP has the potential to attract RM12 billion in investments and generate 10,000 jobs during its construction phases. Land clearing for Phase 1, covering 80 acres for solar and data centres, had been completed.
The park will feature a 300MWac agrivoltaics solar farm with battery storage in line with Sarawak’s Post-COVID 19 Development Strategy 2030.
Zecon had also recently inked a tripartite MoU with Sarawak Digital Economy Corporation (SDEC) and Centre for Technology Excellence Sarawak (Centexs) to collaborate and define their respective roles in the project. Zecon will manage land and infrastructure, SDEC handle digital and security systems while Centex lead skills and innovation initiatives.
Under another MoU signed with Sarawak Incorporated Sdn Bhd, up to 1,000 acres of the park will be used for an integrated pineapple farming and Solar-IoT model, the first of its kind in Sarawak.
Ernst & Young is currently conducting economic impact studies on KPGTP and supporting Zecon’s tax and incentive applications with federal agencies.
