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KUALA LUMPUR: Jentayu Sustainables Bhd (Jentayu Sustainables), previously Ipmuda Bhd, said the hydropower plant it is acquiring in a related-party transaction will be commercially operational by the end of this year.

Telekosang Hydro One and Telekosang Hydro Two, collectively known as Telekosang Hydro, cost RM587 million and will be Malaysia’s largest small hydropower plant harnessing power from the natural flow of a river, Jentayu Sustainables said in a statement. The Telekosang Hydro project has a total capacity of 40MW.

Jentayu Sustainables executive chairman Datuk Beroz Nikmal Mirdin said a supplemental agreement signed between Telekosang Hydro, Sinohydro Corporation Sdn Bhd and PowerChina International Group Ltd addresses the project’s commercial aspects.

Beroz Nikmal, who is also Telekosang Hydro chief executive officer, said there will be no claims or counterclaims from either party that would result in any variations to the original contract value.

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"Telekosang Hydro and involved parties have effectively resolved concerns about project delays, cashflow generation and liquidity support. Furthermore, Telekosang Hydro One, a 24MW plant, is currently undergoing testing ahead of commercial operation,” the statement said.

"The commissioning of this project will pave the way for the completion of Jentayu Sustainables’ acquisition leading to a positive cash flow stream,” the statement said. - Bernama