Malakoff signs Sungai Udang WTE concession in Melaka
KUALA LUMPUR: Malakoff Corp Bhd, via its subsidiary Sungai Udang WTE Sdn Bhd, has signed a concession agreement under a public-private partnership framework with the government.
The deal involves the design, construction, financing, operation, maintenance, and eventual closure of a waste-to-energy (WTE) facility located in Sungai Udang, Melaka.
Sungai Udang WTE is a special-purpose joint venture for the project, with Malakoff holding a 60 per cent stake, while the remaining 40 per cent is owned by Alam Flora Environmental Solutions Sdn Bhd (AFES).
AFES is a wholly-owned subsidiary of Alam Flora Sdn Bhd, which is 97.37 per cent owned by Malakoff.
In a statement, Malakoff said the WTE facility is designed to process up to 1,056 tonnes of municipal solid waste daily and will produce around 22 megawatts of gross renewable energy.
This will be done under a power purchase agreement to be signed between Tenaga Nasional Bhd and the concession company.
Managing director and group chief executive officer Anwar Syahrin Abdul Ajib said the facility plays a crucial role in tackling Melaka's pressing waste management challenges, especially as the state's sole sanitary landfill approaches full capacity.
"By diverting over 300,000 tonnes of waste from landfills annually, the plant is expected to eliminate 75,000 tonnes of carbon dioxide emissions, which is equivalent to preserving more than 3.4 million trees and preventing 23,000 cubic metres of leachate from polluting local waterways.
"Malakoff currently manages 3,649 tonnes of waste per day. With this project expected to add another 1,056 tonnes daily, we will have the capacity to manage up to 6,206 tonnes per day based on our existing contracts, concession agreements and available assets," he said.
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