The Board of Directors of Reservoir Link Energy Bhd (“RLEB” or “Company”) is pleased to announce that Founder Energy Sdn. Bhd. (“FESB”), a 51% owned subsidiary of RLEB, on 19 August 2022, received a letter of award from Atlantic Blue Sdn. Bhd. (“Atlantic Blue”) for turnkey construction and commission of a large-scale solar photovoltaic plant (Solar Energy Generating Facility) of 13MWac at Lot 1223, Mukim Api-Api, Daerah Kuala Selangor, Selangor Darul Ehsan (“Project”).
The salient terms of the LOA are as follows:
i. The scope of work for the LOA shall include but is not limited to the provision of all necessary Preliminaries, Construction, and Installation, Testing and Commissioning of the Earthwork, Road & Drainage, Fencing, Infrastructural, Civil, and Structural Works, DC Mechanical and Electrical Works, LVAC Mechanical and Electrical Works, MVAC Mechanical and Electrical Works, SPP Works, SPP Interconnector, SPP Interconnection Facilities, TNB Interconnection Facilities, and Procurement of all Materials, Consumables and miscellaneous items (save and except for Major Equipment namely PV modules, Inverter, Transformer, Mounting Structure, Switchgear).
ii. FESB shall immediately commence the limited portions of the Works as to be specified in the Limited Notice to Proceed (“LNTP”) issued by Atlantic Blue. Subsequently, FESB shall immediately commence the full scope of Works after receiving Notice to Proceed (“NTP”) from Atlantic Blue and to achieve the Completion Date on 31 December 2022.
iii. The Contract price amounting to RM10.2 million shall be deemed to be inclusive of inter alia labour, material, transport, delivery, handling, packaging, and all taxes (including sales & service tax and/or any other future similar consumption type of taxes, however, named), levies, duties, fiscal charges, freight charges, warehousing charges and other related charges and services necessary for the successful performance and completion of the Works.
iv. FESB is required to provide a performance bond for the Project for ten (10%) percent of the Contract sum to Atlantic Blue.
Atlantic Blue is a wholly owned subsidiary of Solarvest Holdings Berhad, which is listed on the Main Market of Bursa Malaysia Securities Berhad. Atlantic Blue was incorporated on 26 March 2005 and provides engineering, procurement, construction and commissioning (EPCC) services for solar photovoltaic (PV) system and investment in solar PV plants.
The Contract will not have any effect on the share capital and shareholding structure of the Company and there will not be any immediate effect on net assets per share and gearing of the Company. However, the Contract is expected to contribute positively to the earnings of the Company and its subsidiaries (“Group”) for the financial year ending 31 December 2022.
The risks associated with the Contract include, but are not limited to, execution risks such as availability of skilled manpower and equipment and changes in political, economic and regulatory conditions. The Group has, throughout the years, established its track record and expertise to undertake these Contract. Notwithstanding this, the Group shall ensure strict compliance with safety and operational procedures in the execution of the Project requirements.
None of the Directors and/or major shareholders, chief executive of the Company and/ or persons connected to them have any direct or indirect interest in the Contract.
The Board of Directors of the Company is of the opinion that the acceptance of the Contract is in the best interest of the Company.
