The RM3 billion project, to be undertaken by Sabah Renewable Energy Corporation Sdn Bhd, will mark a new milestone in the Sabah Maju Jaya 2021-2025 transformation masterplan that will help Malaysia become a carbon neutral economy by 2050.

Another agreement, also inked today, will see G Capital and Yayasan Sabah subsidiary Innoprise Synergy Sdn Bhd become shareholders of Sabah Renewable Energy.

Sabah chief minister Hajiji Noor, who witnessed the signing of the agreements, said the mini hydropower plants would ensure a constant supply of electricity to Sabah Electricity Sdn Bhd.

He said the objective was to improve infrastructure while ensuring environmental sustainability. “This will contribute greatly to our agenda in transforming Sabah into a more developed and rapid growing state,” he said.

Hajiji expects the project to attract more investors, especially those who value green energy and want to focus on environmental, social and governance (ESG) requirements.

Innoprise Synergy chairman Pandikar Amin Mulia expressed confidence that the collaboration with G Capital would attract more high quality investments to Sabah.

He said this would then create more job opportunities for the people and nurture the growth of a skilled workforce for the state.

Pandikar said the mini hydropower plants would also have a minimal impact on the local community and environment.

“With this, we protect our environment as well as the wildlife in our country,” he added.

The initial plan was to develop mini hydropower plants that could generate an estimated 65 megawatts (MW) of power in specifically identified rivers. This could generate a potential annual income of RM85 million.

Preliminary assessment work has been carried out in Sungai Bayoyo, Sungai Rayoh, Sungai Mokodou, Sungai Wariu and Sungai Panatara.

Both G Capital and Innoprise Synergy will raise the funds to finance the project through equity and debt.