Reservoir Link Energy Bhd (RLEB) has announced that its subsidiary, Founder Energy Sdn. Bhd. (FESB), has been awarded a Letter of Award (LOA) by JS Solar Sdn. Bhd. (JSSB) for sub-contracting works related to a 50 MWac Solar Farm in Kulim, Kedah.
Key Details:
Partnership Details: FESB, a wholly owned subsidiary of Founder Group Limited and 51% owned by RLEB received the LOA from JSSB on 12 April 2024.
Scope of Work: The sub-contract entails engineering, procurement, construction, and commissioning (EPCC) services for the solar farm, including the supply of labor, materials, and equipment.
Timeline: The commencement date for the project is 18 March 2024, with a completion date set for 31 March 2025.
Financial Implications: The sub-contract sum amounts to approximately RM22 million and is expected to positively contribute to the earnings of the Group throughout the contract period.
Risk Factors: Potential risks associated with the project include execution risks such as the availability of skilled manpower and equipment, as well as changes in political and economic conditions.
Director’s Statement: The Board of Directors reviewed the LOA and deemed it to be in the best interest of the Company, fair, reasonable, and not detrimental to minority shareholders.
The sub-contract represents a significant milestone for RLEB in its commitment to renewable energy projects and underscores its expertise in undertaking such ventures.
