Solar Power Purchase Agreements Between KAB Core Connect O&M Services Sdn. Bhd. With Nextgreen Pulp & Paper Sdn Bhd
| Type | Reply to Query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | IQL-15112022-00002 |
| Subject | SOLAR POWER PURCHASE AGREEMENTS BETWEEN KAB CORE CONNECT O&M SERVICES SDN. BHD. WITH NEXTGREEN PULP & PAPER SDN BHD |
| Description |
SOLAR POWER PURCHASE AGREEMENTS BETWEEN KAB CORE CONNECT O&M SERVICES SDN. BHD. [REGISTRATION NO. 202101016957 (1417257-H)], AN ULTIMATE SUBSIDIARY OF THE COMPANY, WITH NEXTGREEN PULP & PAPER SDN BHD [REGISTRATION NO. 201501010647 (1135982-K)] |
| Query Letter Contents |
We refer to your Company’s announcement dated 14 November 2022, in respect of the aforesaid matter. In this connection, kindly furnish Bursa Securities with the following additional information for public release:- 1)The total financial commitment required for the construction of the Solar PV systems together with its breakdown and the source of funds; 2) The details of the income to be generated by KAB Core Connect O&M Services Sdn Bhd (“KABCC”) pursuant to the two Power Purchase Agreements (“PPA”), including the terms of the solar PV energy to be purchased by Nextgreen Pulp & Paper Sdn Bhd (“NPPSB”) from KABCC; 3) The power generating rate agreed between the parties pursuant to the two PPA; 4) In respect of the Phase 2 PPA, the details of the Construction to be completed by NPPSB by 31 December 2022; and 5) The relevant authorities’ approvals required and the status of approval, if any.
Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
Yours faithfully,
Regulation Cc : Market Surveillance Dept. , Securities Commission (via fax) |
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Reference is made to the Company's announcement dated 14 November 2022 (“Previous Announcement”). Unless otherwise stated, the terms used herein shall have the same meanings stated in the Previous Announcement. The Board of Directors of KAB wishes to disclose further information on the announcement made on 14 November 2022 in respect of the PPAs:- (1) The company is in the midst of the finalising the project costs, which are currently estimated to be approximately RM10 million. This is subject to currency fluctuation on solar panel, site assessment, financing arrangement, and consultation charges. The financial commitment is intended to be funded via bank borrowings and internally generated funds, as well as the proceeds from private placement, the proportions of which will be determined later. (2) The income to be generated by KABCC will be deriving from the sales of the solar energy to NPPSB through the solar PV systems which will be installed in two (2) phases, for the next twenty (20) years upon achieving the Commercial Operation Date (“COD”). (3) The power generating rate of the PPAs is negotiated between NPPSB and the Company on willing buyer and willing seller basis. (4) The installation of PV solar will be conditional upon the completion of the on-going construction of the plant of NPPSB, and the construction of the plant of NPPSB is anticipated to be completed by 31 December 2022. (5) The approval from relevant authorities for the PPAs is not required. KABCC is in the process of obtaining “No Objection Letter” from TNB in relation to the supply of solar energy. This announcement is dated 16 November 2022. |
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Announcement Info
| Company Name | KEJURUTERAAN ASASTERA BERHAD |
| Stock Name | KAB |
| Date Announced | 16 Nov 2022 |
| Category | General Announcement for PLC |
| Reference Number | GA1-16112022-00039 |
Kinergy Advancement Berhad
No. 18, Jalan Radin Bagus 9, Bandar Baru Sri Petaling, 57000 Kuala Lumpur, Malaysia.