KUALA LUMPUR (April 26): Comintel Corp Bhd (Comcorp) said today it expects its first waste-to-energy (WTE) plant at Kuang, Rawang to commence recurring revenue and profit generation by June upon the issuance of the formal commencement operation date (COD) certificate from the Sustainable Energy Development Authority (Seda).

Comcorp said following this, it intends to replicate a 2-megawatt (MW) WTE plant in Ampang Jajar.

"We have previously submitted our proposal to Seda and we intend to reapply to obtain the feed-in approval by Seda," it added.

In a filing with Bursa Malaysia today, Comcorp said its first WTE plant has successfully undergone the COD final stage testing between April 3 and 17 and is currently awaiting the issuance of the formal COD certificate from Seda to start operation and supply a maximum of 2MW of electricity to Tenaga Nasional Bhd under a renewable energy power purchase agreement signed on Nov 15, 2013.

Comcorp noted that it is currently focusing on three core businesses namely system integration and maintenance services (SIMS), WTE and green waste management.

On Dec 29, 2017, the group announced an allocation of RM40 million for the development and expansion of its green waste management and WTE businesses, particularly in converting garden waste biomass and municipal solid waste into electricity and thermal power.

To this, Comcorp said its technical and commercial teams are currently undertaking a final due diligence to develop a solid waste treatment plant in Hanoi, Vietnam using green waste management’s WTE system prior to the signing of a definitive agreement with Thanh Cong cooperative, which is expected to be by end-June.

"We are in the midst of finalising another business opportunity of the same nature as an engineering, procurement, construction and commissioning (EPCC) contract in Danang, Vietnam to convert the existing composting facilities to an advanced gasification WTE facility," it added.

Additionally, the group has also submitted a request for quotation proposal early this month to Brunei's Ministry of Development for processing municipal solid waste and converting it into energy.

"Currently, Brunei is managing its municipal solid waste via landfill and the Government of Brunei has the intention to do away with the landfill solution as our advanced gasification system is a better solution to tackle the problem. Our targeted facility will be situated near the existing landfill.

"As the EPCC contractor, we envisage that these contracts will provide Comcorp with immediate revenue flow and profit," said Comcorp.

It added that detailed update will be provided in due course of the forecast revenue and profit projections upon the signing of these definitive agreements.

On its SIMS business segment, Comcorp said it is still generating revenue despite the curtailed spending by the government.

"Due to the upcoming 14th General Election (GE14), the government has delayed awarding new projects for which we have submitted proposals and we are hopeful of securing some of these projects after GE14.

"Arising from the slow-down in our SIMS business, we are undergoing internal reviews and reorganisation to improve profitability, and we hope to release our existing office space utilisation for leasing to external parties, and undertake other cost reduction initiatives," said Comcorp.

It added that in view of the current economic uncertainty, just in case there is significant delay in its EPCC projects, the group has commenced exploring the possibility of acquiring a profitable business to supplement the current businesses and accelerate the regularisation of Comcorp.

Comcorp shares closed unchanged at 20.5 sen today, with 492,400 shares traded, giving it a market capitalisation of RM28.7 million.