Nestcon, Wawasan Dengkil in JV to develop LSS plant

PETALING JAYA: Nestcon Bhd, Wawasan Dengkil Sdn Bhd (WDSB) and WD Solar Kedah Sdn Bhd have entered into a shareholders’ agreement to co-invest in a joint venture (JV) company and develop a 70 megawatts large scale solar (LSS) photovoltaic plant under the LSS Petra 5+ programme in Ayer Puteh, Kedah.

In a filing with Bursa Malaysia, Nestcon said the proposed JV is in line with its strategy to expand its participation in the renewable energy sector and to build a sustainable recurring income base from long-term power purchase agreements.

“Project LSS5+ provides Nestcon with the opportunity to develop a 70 megawatts LSS Petra 5+ PV plant in Kedah, a state identified for its solar potential and growing pipeline of green investments.”

Nestcon said the JV allows it to leverage on its engineering, procurement, construction and commissioning capabilities while tapping into WDSB’s experience in earthworks, civil works and project execution.

“This synergy is expected to enhance the technical and operational delivery of Project LSS5+.

“The board believes that participation in Project LSS5+ will strengthen Nestcon’s track record in the renewable energy space and is expected to contribute positively to the future earnings and long-term growth prospects of Nestcon group.”

In a separate announcement, WDSB’s parent, Wawasan Dengkil Holdings Bhd, said it is proposing to diversify its existing principal activities of the group and its subsidiaries to include investment in renewable energy and related activities.

“The proposed diversification allows us to evolve from a construction-focused contractor into a renewable energy asset investor and operator. This strategic move supports Malaysia’s energy transition and enables the group to build recurring income alongside our core infrastructure business,” said Wawasan Dengkil executive director Lim Soon Yik.