1. INTRODUCTION
The Board of Directors of Solarvest is pleased to announce that on 1 July 2020, the Consortium of Atlantic Blue Sdn. Bhd. and Global Facilities Management Sdn. Bhd. (“the Consortium”) had entered into an Engineering, Procurement, Construction and Commissioning Contract (“EPCC Contract”) with Go Energy Sdn. Bhd. (formerly known as Talent Cloud Sdn. Bhd.) (“Go Energy”) for the provision of engineering, procurement, construction and commissioning (“EPCC”) for the development and operation of the solar photovoltaics (“PV”) system and all associated infrastructure (“System”) at the following six (6) Universiti Teknologi MARA (“UiTM”) campuses (“UiTM Campuses”) (“Project”):
(a) UiTM Cawangan Pulau Pinang, Kampus Permatang Pauh;
(b) UiTM Cawangan Negeri Sembilan, Kampus Kuala Pilah;
(c) UiTM Cawangan Melaka, Kampus Alor Gajah;
(d) UiTM Cawangan Terengganu, Kampus Dungun;
(e) UiTM Cawangan Pahang, Kampus Jengka; and
(f) UiTM Cawangan Johor, Kampus Segamat.
2. INFORMATION ON THE CONSORTIUM
The Consortium is an association constituted by Atlantic Blue Sdn. Bhd. and Global Facilities Management Sdn. Bhd. solely to perform the works under the Project.
Atlantic Blue Sdn. Bhd. (“ABSB”) is a wholly-owned subsidiary of the Company and principally engaged in the provision of EPCC services for solar PV systems and investment in solar PV plant. The current directors of ABSB are Lim Chin Siu, Tan Chyi Boon, Chong Chun Shiong, Datuk Seri Chiau Beng Teik and Chiau Haw Choon.
Global Facilities Management Sdn. Bhd. (“GFMSB”) is a private limited company incorporated in Malaysia on 11 February 2000 and its principal activity is facilities operation, maintenance, management and providing engineering services. The current directors of GFMSB are Zainal Bin Amir, Ruslan Bin Nordin and Mohammad Shahrizal Bin Mohammad Idris. GFMSB is also a wholly-owned subsidiary of GFM Services Berhad, a public company listed on the ACE Market of Bursa Malaysia Securities Berhad.
3. INFORMATION ON GO ENERGY
Go Energy Sdn. Bhd. (formerly known as Talent Cloud Sdn. Bhd.) is an Energy Services Company (ESCO) incorporated in Malaysia to carry out the business of green energy and green technology solutions inclusive but not limited to energy optimisation, renewable energy and sustainable energy. Go Energy is a wholly-owned subsidiary of UiTM Energy & Facilities Sdn. Bhd., which in turn is a wholly-owned subsidiary of UiTM Holdings Sdn. Bhd.
4. DETAILS OF THE PROJECT
(i) Go Energy engages the Consortium as the contractor to undertake the Project, which shall include the development, design, engineering, fabrication, procurement, construction, installation, commissioning, testing, delivery, completion and rectification of all defects in the System at the identified sites located at the UiTM Campuses.
(ii) The contract price for the Project is RM30.0 million and the cumulative plant capacity is 11,057 kilowatt peaks (kWp).
(iii) The contract price, project costs and share of the proceeds to be derived by the Consortium from the Project would be apportioned to ABSB and GFMSB in the ratio of 90% and 10%, respectively.
(iv) The date of commencement of the Project is subject to the issuance of Notice to Proceed by Go Energy to the Consortium, setting out the commencement date, which shall be issued within seven (7) days upon the satisfaction of the following conditions precedent or upon the waiver of any conditions precedent by Go Energy:
(a) The completion of a satisfactory physical inspection and assessment of the relevant construction sites by the Consortium to confirm the suitability of the construction sites for the Project;
(b) The Consortium provides evidence to Go Energy that it has procured and maintained insurance policies in accordance with the EPCC Contract; and
(c) Upon the request of Go Energy, the Consortium to provide a Performance Bond amounting to RM4.5 million to Go Energy in accordance with the EPCC Contract.
(v) The targeted completion date for each UiTM Campus shall be two (2) months from the commencement date as set out in the respective Notice to Proceed. The Project is deemed completed when the UiTM Campuses achieve the commercial operation and the issuance of Certificate of Commercial Operation by Go Energy to the Consortium, upon the completion of the System in all respect in accordance with the EPCC Contract and be able to operate legally, safely, reliably and efficiently and all the performance tests have been satisfactorily performed and passed.
(vi) The Consortium is required to furnish the following performance securities in favour of Go Energy as security for compliance by the Consortium with any and all of their obligations and liabilities under the Project:
(a) Performance Bond of RM4.5 million from the date of EPCC Contract until the date of commercial operation;
(b) Defect Notification Period Bond of RM3.0 million for the period of 24 months from the date of commercial operation until the expiry of the defect notification period; and
(c) Defect Notification Period Bond to be replaced with Post-Commercial Operation Date Performance Guarantee Bond of RM1.5 million and shall be valid until the issuance of the Certificate of Final Completion by Go Energy to the Consortium.
5. FINANCIAL EFFECT
The Project is expected to contribute positively to the earnings and net assets of Solarvest and its group of companies (“Solarvest Group”) for the financial year ending 31 March 2021.
6. RISK FACTORS
The Company does not foresee any exceptional risk other than the normal operational risks associated with the Project. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.
7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
None of the Directors and/or major shareholders of Solarvest or persons connected with them have any interest, whether direct or indirect, in the Project.
8. STATEMENT BY DIRECTORS
The Board of Directors of the Company is of the opinion that the Project is in the ordinary course of business of Solarvest Group and is in the best interest of the Solarvest.
This announcement is dated 1 July 2020.