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Kuala Lumpur: Suria Capital Holdings Bhd’s wholly owned subsidiary, SCHB Engineering Services Sdn Bhd, and its consortium partner, NRG Consortium (Sabah) Sdn Bhd, have accepted a letter of notification from the Energy Commission of Sabah for the proposed development of a 100 megawatt (MW) gas peaking plant in Kimanis, Sabah.

In a filing to Bursa Malaysia, Suria Capital said the letter of notification signified approval of the project’s award to the consortium, subject to terms and conditions, including the execution of the power purchase agreement (PPA) by Dec 31, 2026.

It said that other key conditions under the letter of notifications were the achievement of financial close within six months from the execution of the PPA; submission of a commitment bond of RM5.0 million; establishment of a special purpose vehicle for the project; and a moratorium on changes to the shareholding structure for 10 years after the commercial operation date.

“The letter of notification is valid for a period of 12 months from the date of issuance and does not constitute a legally binding contract for the implementation of the project.

“The project remains subject to the execution of definitive agreements and the fulfilment of conditions precedent,” said Suria Capital.