28/04/2021

ARA DAMANSARA, Selangor: SC Estate Builder Bhd (SCBuild) is looking to raise between RM9 billion and RM13.5 billion to build up to 3,000 megawatts (MW) of solar power plants.

Chairman and managing director Alex BG Loh said the construction company intended to raise the capital via loan stocks or bond issuances to finance the 10-year development.

"We believe investors' appetite is lean towards investing into environmental, social and governance-(ESG) compliant projects," Loh said at a press conference here today.

He added that SCBuild's plans to build 2,000MW-3,000MW of solar power plants in phases would require about 9,000 acres.

SCBuild is optimistic on its outlook driven by its expansion into renewable energy (RE) on solar power plants, solar power on the roofs, affordable houses and infrastructure works under the ESG initiative projects.

He said the solar power plants project complemented the government's target of achieving 20 per cent electricity generation from RE sources by 2025.

"We want to expand our RE portfolio after receiving Sustainable Energy Development Authority's (SEDA) investor licence on January 27 this year. We also want to become an engineering, procurement, construction and commission (EPCC) provider, thus allowing us to build a solar power plant.

Loh said SCBuild had targeted its RE segment to contribute about 30-40 per cent to group revenue in five years.

"We are in the process of recruiting a technical workforce and expect to commence the construction by end of this year," he said.

Loh said the first phase of the solar project would have the capacity of generating 200MW to 300MW.

"The investment and development will be staggered as we also need to secure leasing land from the federal government.

"Initially, the project will be constructed in the northern region - Kedah and Perlis - as the states have higher peak sun hour, suitable for solar power generation," he said.

Loh said SCBuild would also undertake the construction of residentials with solar power on the roofs for up to 3,000 units of affordable houses.

The initial project will have a gross development cost of RM150 million to build 500 units of houses in Kedah. Construction is expected early next year.

Meanwhile, SCBuild is finalising a proposal to buy construction-based Visi Sempena Sdn Bhd for RM60 million to expand its construction business.

Loh said SCBuild had targeted its RE segment to contribute about 30-40 per cent to group revenue in five years.

Source: New Straits Times