Nestcon, Wawasan Dengkil In JV To Develop 70MW Large-scale Solar Plant

KUALA LUMPUR,  Nov 19 (Bernama) -- Nestcon Bhd’s wholly-owned subsidiary Nestcon Infra Sdn Bhd (NISB), has entered into a shareholders agreement with Wawasan Dengkil Sdn Bhd (WDSB) and WDSolar Sdn Bhd (JV Co) to co-invest in JV Co and developing a 70-megawatt (MW) large-scale photovoltaic (PV) plant in Kedah.

In a filing with Bursa Malaysia today, Nestcon said the PV plant, a project under the LSS Petra 5+ programme, is located in Ayer Puteh, Pendang, Kedah (Project LSS5+).

It said the consortium comprising NISB, WDSB and Pristine Multi-Vision (M) Sdn Bhd (PMVSB) had submitted a tender to the Energy Commission (EC) for Project LSS5+ and was shortlisted on Sept 2, subject to the execution of a Solar Power Purchase Agreement with Tenaga Nasional Bhd by Dec 19 for a 21-year tenure.

Meanwhile, JV Co, incorporated on Oct 14, 2025, will undertake the development, financing, construction, operation, and maintenance of the project. At incorporation, WDSB held a 51 per cent equity interest in JV Co, NISB 30 per cent, and PMVSB 19 per cent.

"WDSB and PMVSB had, on Oct 24, 2025, sought the approval of the EC for WDSB to acquire, and for PMVSB to transfer its 19 per cent stake in JV Co to WDSB," it said.

Nestcon said the proposed joint venture (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 the group with the opportunity to develop a 70MW LSS Petra 5+ PV plant in Kedah, a state identified for its solar potential and growing pipeline of green investments.

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

“The proposed project is expected to contribute positively to the group’s net assets per share, earnings per share and gearing level over the course of the joint venture. In turn, this is anticipated to enhance the company’s overall financial performance and shareholders’ value over the longer term.”

Nestcon added that the project will be funded through internally generated funds and is not expected to have a material impact on earnings or gearing in the immediate term.

The company said no exceptional risks are foreseen apart from normal operational risks and that the joint venture does not require shareholder or regulatory approval.

-- BERNAMA