Malaysia: BTM to set up joint waste-to-energy plant in Malacca

Malaysia: BTM to set up joint waste-to-energy plant in Malacca

BTM Resources Bhd plans to team up with two overseas partners to set up a
municipal waste-to-energy (WtE) plant in Malacca at an estimated investment
cost of RM435mil.

In a filing with Bursa Malaysia yesterday, the integrated timber firm said
it had inked a memorandum of understanding (MoU) with Singapore-based China
Western Power International Pte Ltd and China-based Sichuan No. 2 Electric
Power Construction Co to build the plant with a minimum capacity of 1,000
tonnes per day.

Under the MoU, which is valid for a year, the parties will jointly invest in
securing the power-generation project via a special-purpose vehicle to be
formed by them.

The overseas partners are required to procure the entire funding cost for
the engineering, procurement, construction and commissioning of the project.

All technology-development cost related to the project will also be funded
entirely by them.

BTM's obligation, meanwhile, is to secure a waste disposal concession of not
less than 25 years from the Malacca government and suitable tipping fee and
a power purchase agreement.

It is also required to identify, propose and procure a suitable site for the
WtE plant.

The entire and formal agreements relating to the performance of the power
project will be finalised within 30 days from the date that the project is
awarded to the parties, or such further time as may be agreed by the
parties.

"The MoU and collaboration contemplated therein will serve as a platform for
the company to tap into the reputation, experience and standing of Sichuan
Power in power-generation projects.

This will also diversify the income stream and contribute to the
profitability of the BTM Group in the future," said BTM.

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Link to Original Article:
http://www.thestar.com.my/business/business-news/2017/04/18/btm-to-set-up-jo
int-wastetoenergy-plant-in-malacca/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com