PESTECH Inks Deal to Dispose of Concession
GEORGE TOWN: Pestech International Bhd is disposing of its power transmission concession in Cambodia for US$118mil (RM558mil) to Cambodian Transmission II Co Ltd, a wholly-owned subsidiary of Malaysia-based Leader Energy Group.
The agreement to transfer the 25-year build-operate-transfer project was signed yesterday between Diamond Power Ltd (DPL), a 60%-owned subsidiary of Pestech, and Cambodian Transmission II Co Ltd (CTL II).
In a filing with Bursa Malaysia, Pestech said DPL wishes to novate, assign and release itself from the business activities concerning the project while CTL II has expressed willingness to assume from the seller, as a going concern, the business activities with regard to the project, free from encumbrances upon the terms and subject to the conditions of the business transfer agreement.
The 25-year build-operate-transfer concession project includes a 125km 230KV transmission line linking Kampong Cham and Kratie and a 230/115kV substation.
It also transmits electricity from the Lower Se San 2 hydropower plant in Stung Treng to Kratie.
Leader Energy, a wholly owned subsidiary of HNG Capital Sdn Bhd, operates power transmission and generation concession businesses across seven countries in the Asia-Pacific region.
Leader Energy’s journey as an independent power producer began 28 years ago when its parent HNG Capital concluded the first-ever independent power producer (IPP) concession agreement with the Cambodian state-run utility Electricité Du Cambodge to build-own-operate-transfer a 37MW diesel-fired power plant in Cambodia’s capital city, Phnom Penh.
Owing to the initial bold step of becoming Cambodia’s first IPP, Leader Energy leveraged its ‘first mover’ advantage to secure additional concessions in Cambodia, including a 120MW coal-fired power plant, a 230kV double circuit, 110km long high voltage transmission line, and a 150MW coal-fired power plant.